EXPERIENCED ASSET PROTECTION LAW FIRM IN ROUND ROCK, TX AND THE Surrounding Areas
When you have a successful business, are a high income earner, or are employed in a highly litigious industry, you’re viewed as potential target for lawsuits. Asset protection is about preparing for the possibility of a lawsuit so that when it occurs, the party suing you would find it difficult to take control over your property. This requires a sophisticated and complex approach, and it’s critical that only an experienced asset protection attorney assists with this process.
ASSET PROTECTION STRUCTURES
There’s no such thing as an impenetrable asset protection plan or a guarantee that someone won’t receive a judgment against you. There is, however, a big difference between someone winning a judgment and being able to enforce it. There are two main goals when creating an asset protection plan: (1) avoid a lawsuit in the first place or (2) encourage quick settlement by making it so difficult and expensive for parties to sue you, they want out before they even get started.
There is no “one-size-fits-all” plan, and most asset protection plans require a combination of trusts and other structures. Many people believe that simply forming a limited liability company (LLC) will automatically protect their assets, but this is usually far from true. The following are some of the asset protection vehicles used by Dawson Law LLP®:
1. Domestic Asset Protection Trusts (DAPT)
2. Special Power of Appointment Trusts (SPAT)
3. Spousal Lifetime Access Trust (SLAT)
4. Irrevocable Life Insurance Trusts (ILIT)
5. Irrevocable Gifting Trusts
6. Qualified Personal Residence Trusts (QPRT)
7. Equity Stripping
8. Limited Liability Companies (LLC)
9. Family Limited Partnership (FLP)
10. Life Insurance and Annuities*
11. Maximization of state and federally protected property
*Dawson Law LLP® is not an insurance broker and does not sell or solicit insurance products.
Timing is EVERYTHING:
ASSET PROTECTION PLANNING MUST BE PROACTIVE, NEVER REACTIVE.
Unfortunately, it’s usually too late when our phone rings—something already happened and the person on the other end of the line is frantically trying to protect his or her assets. In nearly every instance, your asset protection plan must be implemented before you’re sued or before the event giving rise to a potential lawsuit has occurred. Asset protection done after either of these two events would likely be used against you under a fraudulent transfer argument, thereby exposing your property to vulnerability. For example, let’s say you’re a physician and you’ve been sued by a current or former patient alleging that you committed malpractice. Asset protection planning done after this event would likely afford you little, if any, protection. In contrast, if you had well drafted plan implemented by Dawson Law LLP®, your situation could look very different. Having a proper asset protection plan isn’t just about protecting your assets, it’s about helping to remove fear, minimize leverage the opposing party may have, and cause as little disturbance to your standard of living as possible.
EXPERIENCED TEXAS ASSET PROTECTION LAW FIRM
Dawson Law LLP® is experienced with assisting families create an effective and
focused special needs estate plan.