Protect Your Assets From Creditors And Lawsuits

Anyone can be sued, no matter how wealthy or poor they are. In order to shield your assets from creditors who may come around or from a lawsuits, you may be able to create an effective asset protection plan to ensure that your property remains untouchable. To learn more about what protective approaches you can take, you should consult with an experienced estate planning attorney who can help you consider the value of your assets and what risks they face.

At the law offices of Rudolph & Bloodgood, LLC, we provide our clients with decades of estate planning experience in New Jersey. While our main office is in Kinnelon, we also have an office in Riverdale for your convenience. We are committed to providing each client with personalized attention. When you work with us, you can expect us to prioritize your unique financial needs so that we can help you come up with a successful asset protection plan.

Think Ahead. Plan Ahead. At Now! to Avoid Costly Consequences

Even if you do not anticipate a lawsuit in your future, it may be a good idea to engage in asset protection planning ahead of time. If you are already being sued or are under investigation that could lead to a lawsuit, any attempts you make to transfer your assets to protected them will likely be reversed by the court on grounds that you made a transfer to defraud creditors, which, in legal language is known as a "fraudulent transfer." You can save yourself the serious and substantial financial consequences of lawsuits and creditor claims by making your assets untouchable to begin with. This type of protection requires considerable advance planning and skill and usually applies to prospective business transactions that might be risky.

Some methods of protecting your assets include:

  • Maximizing contributions to IRAs
    Financial assets in retirement accounts such as 401(k)s and Roth IRAs are legally protected from legal pursuit. Maximizing your IRA contributions is, therefore, a strategic approach to protecting as many funds as possible from creditors.
  • Creating an irrevocable trust
    Putting your assets into an irrevocable trust removes them from your estate. If a trust is properly established, assets will no longer be yours to control, and therefore, you cannot be sued successfully for any activity related to them.
  • Retitling your assets
    For example, if you own a home together with your spouse, yet only you are being legally pursued, a creditor cannot force you to sell your house against your spouse's will. Reviewing the current titling of your assets and retitling them to add or change owners can protect you from creditors.
  • Using limited liability companies (LLCs) or family limited partnerships (FLPs)
    If you own a business, forming it as an LLC - rather than a partnership, corporation or sole proprietorship - can legally protect it from being seized by creditors. Similarly, creditors will have to request permission in court before pursuing any assets you own that are protected by an FLP, and even with permission, may not be able to compel you.

Asset protection preservation is critical as individuals become older and potential illnesses make the possibility that nursing home care may be needed. In order to preserve assets for children and grandchildren, or other loved ones, individuals should consider putting a plan into effect before it becomes a crisis. By using outright transfers and trusts, individuals can shelter their assets and maintain their accustomed standard of living if they do it right.

With our legal counsel on your side, you will not have to make these decisions alone. Our attorneys have the skills to help you come up with realistic financial goals according to your unique needs. We will help you choose the asset protection approach that serves you best.

Discuss Your Concerns with Us

To learn more about how our lawyers can help you come up with an effective asset protection plan, schedule a consultation with one of our knowledgeable lawyers, by contacting us online or calling at 973-850-4121. We have offices in Riverdale and a satellite office in Kinnelon. Both offices are handicap-accessible and have adequate off-street parking. We are available during regular business hours in Riverdale and by appointment in Kinnelon.

Both offices are convenient to NJ Route 23 and Route I-287.

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