Some believe that it is easy to develop an asset protection plan on their own. Plenty of information and materials are available on the Internet; however, they may not be aware of the issues and problems that must be resolved before implementing an asset protection plan.
In planning for asset protection it is important to become acquainted with the problems that can occur. Attempting to safeguard all assets may be a mistake, an experienced asset protection attorney may advise that not all assets can or should be protected. There is no asset protection plan that offers absolute protection for all assets. Some assets may remain exposed to creditors and lawsuits. Attempting to protect some assets may result in an expensive judicial determination and may even be considered an attempt to create a fraudulent conveyance.
It is crucial to determine what potential liability exists before devising an asset protection plan. Be aware of assets such as commercial property or furniture in your home that may be seized by the courts.
Though purchasing asset protection materials available on the Internet is easy and inexpensive, there is no attorney-client privilege. Do-it-yourself documents may not provide essential protection.
In some states statutes provide that only a charging order is a remedy for a creditor of a partner in a Family Limited Partnership or a member of a company. In other states a judgment creditor can petition the court and obtain an order for foreclosure. It is worthwhile to consult with an asset protection attorney and confirm whether the laws in your state suit your needs.