Asset Protection

What is Asset Protection?

Asset Protection is the use of legal strategies to protect your property and assets from unexpected liabilities. In simple terms, asset protection is a proactive approach to protecting your assets from claims and liabitlies such as lawsuits and nursing home costs.

Why is Asset Protection Important?

Most trusts or estate plans do not protect your assets. Asset protection strategies ares specifically designed to shield your hard earned work.

Is Asset Protection Legal in New Orleans?

Yes! Asset protection is absolutely legal in New Orleans and highly encouraged, especially if you work in high-risk environments and possess valuable assets.

What are Common Asset Protection Strategies in New Orleans?

Common asset protection strategies in New Orleans, include announcing a homestead exemption, the utilization of retirement accounts, and creating trusts specifically designed to protect your assets against creditors.

Can I Protect My Assets After a Lawsuit Has Been Filed in New Orleans?

Remember, asset protectionis legal and highly encouraged. Following the filing of a lawsuit you still have options to develop a plan. Overall, there are few laws prohibiting the creation of an asset protection plan. Each case is unique and sound legal analysis will be required to determine the necessary steps but generally it is not too late to find legal protection. 

Does asset protection work against all creditors?

The short answer is yes, most of the time. Opening an irrevocable asset protection trust makes it unlikely that any creditors would have a claim to the assets in the trust. 

How do I begin with asset protection?

The first step would be to collect information about the assets you wish to protect. Next you can identify the goals you want to meet with your specific asset protection plan. Finally you can choose a protection plan that works best for you to meet your desired needs.

Are retirement accounts protected?

Generally retirement accounts are protected with some exceptions. If a traditional or Roth IRA account has a balance greater than $1,512,350.00, it may be at risk to any outstanding debts. It is also important to note that 401(k) accounts are usually protected when the proper steps are taken. For example, avoid using funds from your 401(k) to pay off debts because this can expose the account's funds to creditors in the future.

What role does insurance play in asset protection?

Insurance can be used to protect many different assets, such as cars, homes, and businesses. Having insrance on important assets protects them in the event of damages or losses. When an asset is damaged or lost, insurance pays to have the asset repaired or replaced, depending on the policy. 

How does asset protection differ from estate planning?

Asset protection focuses on protecting assest preemptively to safeguard assets for future inteded use. Whereas estate planning concentrates on preparing assets following a person's death.

Is asset protection only for wealthy people?

No! Asset protection is not just for the wealthy. In fact, asset protection is encouraged for anyone who has assets in need of protection.