Sometimes asset protection is thought of as something only wealthy people do. However, while wealthy individuals can certainly benefit because they likely have more assets in general to protect, most people can benefit from a good asset protection strategy.
The main goal of asset protection planning is to shield assets from lawsuits or other judgments without violating tax or transfer laws. In Utah and some other states, laws have been enacted that allow for the creation of special trusts called asset protection trusts. These trusts work by transferring legal title of certain assets (for example, a home, interest in a business, financial accounts, etc.) out of your name to someone else (called the trustee) but still allowing you to have an element of control over the trustee.
Asset protection trusts are not a good fit in all situations, and if you are already involved in a legal dispute or know you may be soon, transferring title of your assets into an asset protection trust may violate laws and be deemed a fraudulent transfer. However, in many circumstances including an asset protection trust in your estate plan can help protect your assets for your future use and the use of your heirs.
At Priority Law, an asset protection attorney will advise you on different strategies and work with you to make sure your property is protected without violating laws. Call us at 801-960-2750 or email us at email@example.com to set up a free consultation.