In a recent interview, asset protection attorney Dennis Toman, founder at The Elderlaw Firm in Greensboro, NC, has just revealed key things that will help protect a financial estate when facing a lawsuit. —
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When asked for a comment, Toman said, “Here are some important workarounds to take into consideration to safeguard your hard-earned assets in case you find yourself in a lawsuit.”
One way to keep a secure grip on wealth is through ensuring sophisticated legal structures are in place.
“If you find yourself confronting a lawsuit, then you might be tempted to transfer your assets to a trusted family member as this logically seems like one of the best ways to maintain or continue exerting control over an estate. However, things can sour very quickly, particularly if the person you transfer your estate lands in hot legal waters. This could then leave your assets vulnerable,” he said.
Toman was quick to add that problems with this kind of transfer are more common than people think.
When asked for an example, he said, “Let’s say that you title your estate or assets in your spouse’s name, and then they get into a car accident after. If they get sued, then your assets could also be at stake in the lawsuit. The situation could become even more complex if you and your partner decide to divorce after your estate is in their name.”
Furthermore, according to Toman, the courts might interpret this type of transfer as fraudulent.
“What makes a transfer fraudulent is transferring assets over to someone else as a less than reasonable equivalent value in an attempt to defraud a creditor. If you entitle your funds over to someone else, then the courts will view this suspiciously and think that you are trying to sidestep paying debts that you owe,” he said.
Toman stressed that this runs counter to the main aim of asset protection planning, making it all the more vital to begin the planning process far in advance before it’s too late.
“It’s best to begin planning for asset protection before you have any sort of legal issues. Any wealth transfer completed after you have knowledge that you are facing a lawsuit could easily be considered fraudulent. And with this accusation comes stiff penalties that could have otherwise been avoided with proper planning – or the courts might ask that the assets in a fraudulent transfer be given to the creditors,” he added.
Name: Dennis Toman
Email: Send Email
Organization: The Elderlaw Firm
Address: 403 W Fisher Ave, Greensboro, NC 27401
Source URL: http://RecommendedExperts.biz
Release ID: 88985504