Many people consider asset protection something people do when their net worth exceeds millions of dollars. They consider Swiss bank accounts and tax havens and assume because they are working or middle class, protection is unnecessary. This is untrue! If you have any assets, it is important to have them protected. Homeowners must make an effort to protect the equity in their home, especially if their state does not provide home exemptions. Cars and other personal property should also be considered and, you need to make sure these assets receive protection. Again, this is not just in regard to massive wealth. An engagement ring is a jewelry investment and having inherited jewelry or artwork means you now own these assets. Furthermore, savings and investments need protection, all of which may be at risk should you be found liable in a court settlement or attacked by creditors. In many instances, a Cincinnati bankruptcy lawyer can help you establish strong protection plan. Cincinnati bankruptcy lawyers often have knowledge about how creditors behave and what will be at risk should you not protect your assets. Speak with one about you options for protection and your risk should you forego protection.

While some may be surprised offshore investment options are perfectly legal, others understand it is a great method of protection. There are a number of ways in which to utilize offshore guards. While creditors will have little problem discovering your offshore accounts, U.S. court rulings will not hold up. The assets are covered under the laws and regulations of the host country. The only way creditors can access the money is by traveling to that country, had their case tried in that country’s court system, and received a comparable settlement to what they were seeking in the United States. It is unlikely this will occur because it is time consuming and expensive.

Your other option, often known as the poor man’s asset protection, is transferring your assets to another person. This can be a risky move, even when you trust the transferee. Should the relationship go astray, you are out of luck. Your enemy has legal ownership of your assets. There is also a risk of the creditors proving that it was a fraudulent transfer. This means the court sees you transferred these assets for the sole purpose of avoiding debt payments. While this is not illegal, the court can simply ignore or undo the transfer and you are back where you began. To avoid this accusation, prepare your protection plan well in advance of needing it.

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