When you’re worried about protecting your assets from a potential lawsuit, understanding your options to help shield your assets is critical. However, asset protection spans beyond writing a simple estate plan. Different documents can work in your favor in these instances. If you’re unsure what your options for protecting your assets are, you’ll want to keep reading. The following blog explores how Pennsylvania estate planning attorneys can guide you through the complexities of this process.
What can I do to protect assets from a lawsuit?
If you are worried about a potential lawsuit from creditors costing you your assets, it’s crucial to understand the steps you must take to help minimize the risks with this.
Most commonly, those looking to shield assets from creditors choose an irrevocable trust. This is an ideal option, as it transfers the asset out of your name and places it in the ownership of the trust. As such, these assets cannot be seized in a lawsuit, as you technically do not own them. Unlike a revocable trust, in which a creditor can sue the creator of a trust, an irrevocable trust limits the legal options of a creditor and the courts.
Though this offers significant protection from creditors, an irrevocable trust can have downsides, as you will no longer have control over the assets. Additionally, as the trust is irrevocable, this means no changes can be made to the terms and conditions of the document after its conception.
What should I do if I need help planning my estate?
If you are worried about what will happen to your assets during your lifetime or after your passing and want to ensure your beneficiaries receive the assets intended for them, taking the time to plan your estate with these concerns in mind is critical.
Unfortunately, many procrastinate in creating their estate plan as they think they don’t have enough assets, the process is too expensive, or they are too busy to take time out of their day to go through this process. However, it’s necessary to understand that delaying estate planning can have adverse impacts on your assets and beneficiaries. For example, if you do not take the time to start this process, a lawsuit can leave your beneficiaries with little to no support after your passing. As such, doing what you can to prevent this is necessary.
At Friedman Schuman, we understand the importance of planning your estate to ensure you can shield your hard-earned assets. However, we also know that navigating the complexities of estate planning can be incredibly complicated, especially if you are unfamiliar with your options. That’s why our team is dedicated to helping you explore your options to ensure you feel confident with your decisions. Connect with a member of our firm today to learn how we can help you.
