Taking the time to protect your assets is not something many think about, but as nothing in life is guaranteed, taking the time to do so is critical. Luckily, working with Pennsylvania estate planning attorneys can help you create documents to shield your assets and ensure you can take care of your loved ones. The following blog explores why you may need to protect your estate from creditors, how to do so, and why contacting an experienced lawyer is critical for these complex matters.
Is it possible to protect my estate from creditors?
When you’re in debt or at the center of a lawsuit, taking the necessary steps to protect your assets from creditors is critical. Unfortunately, if you lose a lawsuit filed by a creditor, you may lose your assets. As such, taking the time to shield your assets from potential lawsuits is critical to ensuring your property and beneficiaries are protected.
Additionally, if you file for bankruptcy or go through a divorce, your assets can be put at risk. That’s why taking the time to plan your estate is not only ideal for protecting beneficiaries upon your passing, but it also helps keep your assets safe during your lifetime.
What documents can I establish to shield assets?
Generally, one of the best ways to shield your assets from creditors is establishing a trust. When you create a trust, you are essentially moving the assets from your estate and ownership to the trust, so technically the trust owns the assets. However, it’s necessary to understand which type of trust is beneficial for protecting assets.
If you establish a revocable trust, you can change the beneficiaries and assets after it’s created. However, because the trust will remain in your control, the assets are still technically in your ownership. As such, if you are sued, these assets are at risk.
Creating an irrevocable trust, however, can help protect your assets. This is because you relinquish control of the assets once they are placed in the trust. A revocable trust cannot be altered once it is created. As such, the assets held in the trust will likely not be subject to seizure during a creditor lawsuit.
How can an attorney help me?
As you can see, there are many considerations you must make when exploring your estate planning options. Unfortunately, if you are unfamiliar with this process, you may make errors that can negatively impact you later. As such, connecting with an experienced attorney is critical to making the most informed choices for the best possible protection.
At Friedman Schuman, we understand how complex these matters can be. That’s why our dedicated team is ready to assist you through these challenging times to help you achieve peace of mind. Contact our team today to learn how we can help you navigate these complex matters.
