An estate plan doesn’t just allow you to pass on assets to the next generation. A plan can also help you protect those assets from people who would want to sue you for whatever reason. If you want to know more about how you can safeguard your family’s wealth from lawsuits, a Des Moines estate planning lawyer from our firm can help.
What Are Some Ways to Protect An Estate From Lawsuits?
There are a few popular ways to protect assets from lawsuits, some of which can be set up when you establish an estate plan of your own. You can protect assets by:
Establishing business entities: Having a business entity, like an LLC, hold some of your most valuable assets can protect them if you get sued personally. You can also use something known as a family limited partnership, or FLP, to protect assets from lawsuits and make it easier to transfer them to beneficiaries.
Purchasing insurance: Purchasing a broad insurance plan can help you protect both your business and yourself. If you have a large enough policy, any lawsuits would collect from your insurance company instead of taking assets from you. Working with a professional who can tell you how much coverage you need is advised here.
Going offshore: You can set up a foreign asset protection trust, or FAPT, in a country with favorable rules for such arrangements. When lawsuits are filed against you, it can be difficult for someone to claim assets from a FAPT from the United States. Just be aware that there are many rules about these types of trusts and that having professionals help you maintain them and meet any accounting requirements is practically a necessity.
Can Signing Assets Over to My Spouse Protect Them From Lawsuits?
Another way to protect your assets from lawsuits is signing them over to your spouse. There is an obvious problem with this though. What happens if your spouse decides that they no longer want to be your spouse?
In a divorce, it would be rather easy for your spouse to claim the bulk of your estate because you already gave it to them! So while this is an option that could safeguard your assets, you really should explore other options. No matter how rock-solid your marriage seems, you should be prepared for anything.
Should I Talk to a Lawyer?
We definitely recommend talking to a lawyer about your assets and any potential liabilities. Every estate is different, and that means that different methods of asset protection could be better fits for different people. Let us help you explore all of your options.
Contact Our Law Firm Today
If you want to learn more about how to protect your estate from lawsuits, schedule a consultation at Herting Law, PLLC. We can teach you more about estate planning tools and help you figure out which would work best for you.
