As the most litigious country in the world, the United States boasts one lawyer for every 265 Americans. According to asset protection attorney Hillel Presser, “There are over a hundred million lawsuits every year. One in three people will be sued in the next twelve months.” With the ever-present possibility of a lawsuit, it is vital to make sure that your assets are protected.
A recent article discusses several ways through which entrepreneurs, small business owners, professionals, and wealthy individuals can protect their assets. One common asset protection tool is a revocable trust. One benefit of revocable trusts is that they are more flexible than other trust options. The creator of a revocable trust can change the terms of a revocable trust as necessary, or even dissolve the trust completely.
Irrevocable trusts are another asset protection tool. These trusts are not flexible, however, like revocable trusts. Irrevocable trusts must remain in existence until the stated purpose of the trust is completed. Moreover, the terms of an irrevocable trust cannot be changed.
Another asset protection maneuver is to convert non-exempt assets, such as cash, stocks, and bonds, to exempt assets. Exempt assets are protected under state law, and prove to be a viable alternative to irrevocable trusts.
