ASSET PROTECTION can be simply explained as legally safeguarding one's assets from creditor claims. The longer you are in business and the more you accumulate, the more demanding asset protection becomes. Claimants can arise from the simplest of situations, such as a personal injury claim from a traffic accident or a fall on your property. Honest, well-intentioned people can still face major losses in situations that were out of their control, especially if an unscrupulous claimant senses a large amount of assets worth going after.
The best method for asset protection depends upon the type of ownership and the asset class in any given situation. The strength of asset protection is enhanced by forming corporations, trusts, or shares of a business entity owned by a trust. The language of the trust agreement or corporation operating agreement is also very important. For instance, does the agreement forbid unwarranted creditor interference? Does the trust document limit the beneficiary's interest so as to prevent unmerited estate recovery?
UAR has valuable experience in working with startup and ongoing corporations, limited partnerships, LLC's, and other business entities to facilitate asset protection.