Asset Protection typically refers to the process of legally protecting your property/estate from potential creditors, including lawsuits and divorce actions.
Asset protection planning is all about “putting your eggs in different baskets”, so to speak. We often use various methods and strategies, such as insurance, state & federal “freebies” (i.e. Nevada Homestead Exemption), as well as advanced methods such as the use of LLCs & Nevada Asset Protection Trusts. Everyone’s plan differs based on their goals, their situation, and their risk-tolerance.
Below you’ll find some of the most common questions I’m asked about asset protection, as well as my answers.
Nevada Asset Protection FAQs
Q: Who Needs Asset Protection?
A: Some of the most common clients we see who are concerned about protection their assets are those in “high-risk” professions/industries: think obstetricians, real estate investors, etc. This is simply because they get sued more than your average bear.
However, everyone in the US has a risk of being sued- for any reason- which is frightening. Many people with minimal risk have become concerned about protection their assets when faced with a lawsuit, due to a car accident or sale of their home.
Because average people can often get caught up in tricky situations, if you have something to protect then the topic of asset protection should at least cross your mind.
Q: How Can You Protect Your Assets from Lawsuits?
A: This is accomplished through the process of Asset Protection Planning. Simply put, Asset Protection Planning is the process of taking assets that could be subject to creditors’ claims, (sometimes referred to as “non-exempt” assets) and re-characterizing them as “exempt” assets (those that are likely to be out of the reach of creditors’). Nevada increasingly has become a leading domestic trust situs state, due in large part to our favorable trust & asset protection laws and tax environment.
The experienced Asset Protection attorneys at Phillips Ballenger in Las Vegas NV, have expertise in assisting clients with the structuring of their estates, including real property and other assets in a manner that minimizes their exposure to potential creditors. Formation of trusts, including Nevada Asset Protection Trusts (also known as Nevada Self-Settled Spendthrift Trusts, Nevada Domestic Asset Protection Trusts), Nevada LLCs & other Posted in All About Business Series, Asset Protection, Asset Protection Series, Businesses & Corporations, Entrepreneurs, Family, FAQs, Food for Thought, Millenials, Nevada, Organization, Real Estate, Small Business, Tips, Trusts