Benefits of Asset Protection
Asset protection is a type of legal planning that keeps your property safe from creditors. It includes various legal strategies designed to protect your assets from lawsuits, bankruptcy, divorce, and other creditors. James Nici is an asset protection lawyer familiar with how to help his clients protect their assets properly.
Common forms of asset protection include business succession planning, nuptial agreements, family limited partnerships (FLPs), LLCs (Limited Liability Company), and trust creation. Property holders must also take care to minimize the impact of estate taxes or taxes on that person’s property at death.
Asset protection planning is not just for wealthy individuals. There are many reasons to include asset protection in your estate plan. Below are six of the top reasons you should consider incorporating asset protection into your Naples estate plan.
Asset protection reduces the chance of lawsuits by providing financial privacy. There are strategies to keep the type of assets you own and the quantity private. If your assets are removed from the public eye and difficult to associate with you, there is a lower chance that you will be targeted with frivolous or unwarranted lawsuits from business associates, employees, governmental regulators, and others seeking an easy or vulnerable target. It is common for plaintiffs to target individuals they know have “deep pockets.” Even lawsuits that are frivolous cost time and money to fight.
2. Limit Loss After Lawsuits
If you are the target of the lawsuit and the plaintiff receives a judgment against you, asset protection can shield some of your property from the collection. There are strategies to ensure that certain assets remain untouched even if the judgment against you is substantial. Even if you lose the lawsuit, the settlement against you will be smaller.
Protection during lawsuits is especially important for professionals, such as physicians, dentists, lawyers, and contractors, that face a constant threat of lawsuits from patients, clients, and government agencies.
3. Protect the Future of Your Business
If you are a business owner, asset protection can help protect your business’ assets to ensure its continuity and future survival. If a creditor can access valuable assets in your business, your entire company could end up being halted. Asset protection helps regulate the business property that a creditor can reach.
4. Protect Against Business Losses
Asset protection can ensure that a business owner’s personal property will stay safe regardless of what happens to their business. You do not want to risk personal loss if your company goes bankrupt or faces a lawsuit. One way this can be achieved is by incorporating the business as a Limited Liability Company.
5. Protect Losses From Estate Tax
Even though Florida does not impose estate or inheritance, your estate could owe federal taxes depending on its size. As of 2023, federal estate taxes are imposed on estates that have a value of over $12.92 million. If your heirs do have to pay estate tax, it can significantly reduce the value of their inheritance. Asset protection strategies, such as transferring property into an irrevocable trust, can protect your estate from losses due to federal estate tax.
6. Protect Against Risks Presented by Heirs
Most individuals want to ensure that the inheritance they leave their loved ones is protected even after they are gone. With asset protection planning, you can structure your estate so your family’s inheritance will not be lost to divorce, bankruptcy, or lawsuits. You also have the option of creating trusts to meet the specific needs of beneficiaries who require extra protection, such as those that are disabled or suffer from addiction.
Contact James Nici, a Top Naples Asset Protections Lawyer
Asset protection is a critical part of estate planning for your future and those you love. Get help creating an Asset Protection Plan that makes sense for you. Call Naples asset protection lawyer, James Nici of Nici Law Firm, at 239-449-6150 or contact us online for a complimentary consultation.