Facts About Asset Protection Plans

Very few of us consider the act of a lawsuit in our daily lives, therefore protecting against it is not a priority. What considerations do we protect ourselves from; car accidents, homeowner incidents (fire, flooding, etc) - a lawsuit is hardly "expected" which leaves most of us wide open for being a target. Even if a lawsuit seems frivolous, you can still lose.

• 78% of lawsuit defendants never thought it would happen to them
• 90% of all lawsuits are filed in the U.S.
• A new lawsuit is filed every 30 seconds, on average
• The self-employed and business owners have a 33% chance of becoming a defendant in a lawsuit
• There are over 100,000 students in law school today
• FBI reports that a quarter million criminals make their living through lawsuits

Asset Protection is not just for the wealthy, recent studies show that the average income bracket for targeted lawsuits is under $200,000 a year.

By establishing an asset protection plan before its necessary, you safeguard your wealth from a predator. In the event that your assets are jeopardized or you are a defendant in a lawsuit, any transfer of your assets is subject to a criminal offense scrutiny under fraudulent transfer laws. If you are sued and you give your assets to a family member, it can be quickly interpreted as an attempt to defraud a creditor - landing a criminal charge.

If you transfer assets or property knowing that you are likely to be sued, it could be considered fraudulent and, in that case, you could be faced with defending the asset transfer. The transfer could be reversed and you could be charged and fined. Asset protection is much more difficult after you need it, however it is possible but will take much more careful measures.

Who Should Create a Plan

Owning any assets, it paints a target on your back, the more valuable the asset the bigger the target. Do you own a home? Your home is an easy asset to seize. It is visible. It is easy to find out what it is worth. It is easy to look in the public records and figure out the mortgage balance with relatively good accuracy.

Are you employed? Having a job makes one an easy target. Lawyers know they can generally garnish your wages. A licensed professional person is an easy target. They usually earn more than the average income and have a greater than the average net worth.

Are you Married? Being married makes you a target. In many states, the debts of one spouse are considered the debts of the other spouse. The liability caused by one spouse can leave assets vulnerable to the other.

Do you own investment property? Those who own investment properties are usually easy targets. Real estate is a high lawsuit risk. Having others live in the property multiplies the risk all the more.

Are you a parent? Having children makes you a target. Parents are typically 100% liable for acts of their minor children.