When you are starting the estate planning process, you should make sure that you are taking steps to protect assets from a lawsuit. A lawsuit can happen when you are alive or shortly after your death if there are any squabbles over pieces of your estate. A properly made estate plan can help protect your assets and make sure that your beneficiaries get what they deserve. Our Washtenaw County asset preservation attorneys can help you take advantage of estate planning laws to protect yourself and your family.
Why is it So Important to Protect Assets From a Lawsuit?
When you take steps to protect assets from a lawsuit, you do not just do that for your own benefit. Something could happen after you pass away, and your forethought while estate planning could end up protecting your beneficiaries as well. You do not want assets you handed down to end up getting wasted away due to an accident or a divorce.
Will a Trust Protect Assets From a Lawsuit?
The use of some types of trusts can actually help you protect assets from a lawsuit. There are many rules and regulations surrounding trusts and different types of trusts that you can establish, so we do not recommend that most people start this process on their own. We can help you figure out which kind of trust will work for you and best protect your assets.
This often means establishing an irrevocable trust. This type of trust can have you as the beneficiary, but you have no control over it. If someone sues you, the assets in this trust are technically not your assets. One type of irrevocable trust is a DAPT, or Domestic Asset Protection Trust. Your lawyer could also guide you through the process of setting up an offshore trust. These can sometimes offer the best possible protection due to international laws.
Are There Other Ways an Estate Plan Can Protect Assets From a Lawsuit?
Trusts are not your only option though. Your estate planning lawyer can also help you look at other ways to protect assets from a lawsuit. Popular options include:
- Family Limited Partnerships, also known as FLPs
- The formation of an LLC or Corporation
- The purchase of property and liability insurance
Every single estate is different, so our attorneys do not approach yours with a “one size fits all” approach. We will do everything that we can to help you find the best way to protect your assets before and after your passing.
Schedule a Consultation With Our Team
When you are ready to learn more about your options, you should contact Collis, Griffor & Hendra. We would love to schedule a consultation and take a closer look at your asset protection and estate planning needs. If we think that we can help you out, our lawyers will begin assisting you right away.