Gudorf Law Group, based in Dayton, has asset protection strategies designed to protect a family’s assets in the event of an accident, business risk and other unexpected circumstances that may otherwise force a family to liquidate those assets to pay a judgment. Nobody is immune from circumstances that can jeopardize unprotected assets, so no matter what your income level or net worth is, it’s a good idea to put a protection strategy in place.
Some of the tools frequently used in asset protection strategies include insurance, irrevocable trusts, and corporate structures like limited partnerships and limited liability companies. Determining the particular combination of these tools best suited for you will depend largely on your circumstances and the assets you need to protect. A Dayton asset protection attorney can help you determine what is best for you. For now, let’s take a brief look at some of these commonly used asset protection tools.
Ohio and Dayton Asset Protection Tools
The following asset protection tools are used throughout the United States. Actually, it is common for people to form trusts and business entities in certain states because the laws of those states are more favorable than those of the state in which they live.
Insurance — Liability insurance, including auto insurance and umbrella policies, is the first line of defense. In lawsuits, attorneys first attack insurance policies because the money is easier to get. The more insurance you have, the safer your assets are.
An Asset Protection Trust — A trust is a legal entity that takes ownership of the assets placed into it. If a trust owns your assets rather than you, then, in a few states, the assets can’t be seized to pay a judgment against you. The law allows a resident of Ohio to place assets in a trust created elsewhere.
Limited Partnerships and Limited Liability Companies — It may seem strange to protect family assets with business entities. But many assets generate income through appreciation, interest or dividends and often many family members ultimately benefit from that income. So you can see how these assets can qualify as a business. Real estate, stocks, bonds and other investment vehicles are commonly put in limited partnerships or limited liability companies as part of our asset protection strategies. These business structures protect family assets in several ways, which we’ll detail in our next post: LLC’s and Limited Partnerships for Dayton Asset Protection.