Asset protection is more important than ever in our modern society. Working hard to accumulate significant assets can make you the target of frivolous lawsuits and other nefarious activities aimed at stealing what you invested your lifetime earning. There is more to asset protection than many people realize, and the internet offers lots of erroneous or incomplete information.
Are you making serious asset protection mistakes that leave you ripe for ruin? A Tampa Bay Asset Protection Attorney from Mortellaro Law reviews some of the most common mistakes.
Using a Revocable Trust for Asset Protection
Also called a living trust, a revocable trust can be altered or “revoked” by the creator during their lifetime. The grantor can add or subtract assets, change beneficiaries, alter the terms of the trust, and more while they are alive. A Living Trust is an excellent tool for estate planning and offers significant benefits. It is commonly used for avoiding probate, taking care of your family’s future, funding special projects or causes, providing for a special needs loved one, and even planning in advance for Medicaid. They can even protect how the trust assets are used to prevent frivolous spending.
However, a revocable trust does not protect your assets. Creditors can still reach a revocable trust’s assets while the grantor is still alive.
Transferring Assets to Family | Tampa Bay Asset Protection Attorney
Many people erroneously believe that giving their assets to family members can shield them from creditors. On its face, this may seem to be a workable solution — it is not. Doing this can actually be considered a fraudulent conveyance or transfer. Plus, it is used frequently enough that your creditors often begin looking at your close relatives to uncover such transfers first. You also lose control of your wealth; no one can predict what circumstances can happen. Your family can also incur additional tax burdens. A Tampa Bay Asset Protection Attorney can recommend better strategies.
Confusion About Insurance
You can’t have too much insurance, right? Well, in fact, you can. Having enough insurance to provide for most contingencies is a wise and critical aspect of sound asset protection planning. However, having too much insurance can make you a ripe target for those nefarious plaintiffs who see such people as a means to an end. Your insurance coverage is too detectable in our digital information age. Contact Mortellaro Law to discuss how much insurance is prudent for your circumstances and to find the best coverage protection.
Inadequate Business Records
Many small businesses or sole proprietors fail to maintain adequate records of their business. Keeping every single record for your company’s lifetime may not be necessary, but accurate records of your business affairs are vital. If you are sued, your business records are the first thing the plaintiff’s attorney will ask to review. Your small business may be set up incorrectly and fail to take advantage of some legal protections. A Tampa Bay Asset Protection Attorney can review your company’s records and recommend any changes that could prevent catastrophe.
Waiting Too Long | Tampa Bay Asset Protection Attorney
Perhaps the most common mistake Floridians make is waiting too long to build asset protection strategies. They live as if legal issues will never arise. When a lawsuit or creditor seeks to take your assets, it’s too late to start thinking about protection. What could happen to threaten your assets?
- Sudden illness or accidents
- Frivolous lawsuits
- Unscrupulous creditors
- Greedy family members
- Divorce
- Business reversals
- Partnership disagreements
- Old age (Medicaid planning)
The time to begin asset protection is before any legal issues surface. Waiting until legal trouble threatens your assets is too late. Sound estate planning and asset protection planning go hand in hand. If you have significant assets, don’t wait a single day longer to initiate asset protection planning.
Contact a Tampa Bay Asset Protection Attorney at Mortellaro Law to discuss what tools are available and the best ones to use in your robust Florida asset protection strategy.
