What Is Asset Protection Planning?
In Oklahoma, asset protection planning is the broad name given to a wide variety of legal actions you can take to protect your assets from the grasp of creditors. Asset protection planning encompasses everything from irrevocable trusts to the reconfiguration of your business.
Asset protection planning is a popular activity for those who have accumulated property and savings and want to make sure they can use their money for the protection and care of their loved ones. For example, something as simple as a car accident can have devastating financial consequences on a family. The resulting claims can exceed millions of dollars. Since most of us do not carry and cannot carry multiple million-dollar liability policies, we turn to asset protection. Of course, such protection must be in place before an accident occurs. The answer is to plan in advance and to monitor that planning on a regular basis.
Is It Legal To Shield Assets From Creditors?
It is absolutely legal to shelter assets from creditors. Both state and federal courts have come to the conclusion that you are entitled to take reasonable actions to protect the health, wellbeing and care of yourself and your loved ones. Of course, these actions have to be conducted well in advance of any claims by creditors. When you attempt your asset protection after the fact, it is practically certain that a court will find that to be an act of fraud.
Does A Revocable Trust Serve As Actual Asset Protection?
A revocable trust does not generally have any asset protection power at all. The court can take from you that which you have retained. In a revocable trust, you have retained that right to revoke that trust and to recover all of the assets that belong to it. Therefore, the court can, in appropriate circumstances, revoke that trust, return those assets into your name and then, assign them to your creditors. A revocable trust is an excellent piece of an estate plan, but it is not a direct part of your asset protection planning.
When Is The Best Time To Start Asset Protection Planning?
You can never start your asset protection planning too early. The sooner you create your plan and the better you maintain it, the more likely it is that your creditors will be kept out of that planning. One great way to begin your asset protection planning is by joining one of our estate planning workshops.
For more information on Asset Protection Planning In Oklahoma, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (405) 754-4166 today.
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