California sees over 1.2 million civil cases every year – roughly one case for every 26 adult residents. That’s enough to make it the lawsuit capital of the United States.
Living in a place this litigious without an asset protection attorney is like hanging a sign above your door that says, “Sue me.” So, it’s wise to hire an asset protection lawyer as soon as possible. With their help, you can set up a robust financial defense system that protects your assets from creditors and frivolous lawsuits.
Still unsure of whether you need a California asset protection attorney? Read on to learn why hiring one is vital to keeping your wealth safe.
- What an Asset Protection Attorney Does
- Who Needs an Asset Protection Attorney in California
- Common Threats to Assets in California
- Major Benefits of Hiring an Asset Protection Attorney
- How to Choose the Right California Asset Protection Attorney
What an Asset Protection Attorney Does
An asset protection attorney serves as your legal shield against lawsuits and creditors. They establish asset protection structures that actively prevent lawsuits. These same structures also shelter your assets during a lawsuit.
California asset protection attorneys perform these tasks in a manner that honors California’s legal environment. Since each state has unique asset protection laws, you need an attorney who’s well-versed in your home state’s laws.
Tools Used by California Asset Protection Attorneys
A California asset protection attorney doesn’t fight in the courtroom. Instead, they craft legal and financial structures that comply with California’s laws.
To do their job effectively, they use a variety of wealth defense strategies and tools, such as:
- Asset Protection Trusts: An asset protection trust (APT) is a trust that keeps assets out of creditors’ hands. APTs legally separate you from your assets, keeping them safe during a lawsuit. Some APTs, specifically those established overseas, are so strong that they can defy U.S. court orders.
- Limited Liability Companies (LLCs): LLCs act as a barrier between your business assets and personal assets. Experienced asset protection attorneys can leverage these structures in tandem with APTs. This gives you greater control over your trust-held assets.
- Land Trusts: A land trust is used to hide your name from property records. It doesn’t provide much protection once a lawsuit is filed, but it can prevent lawsuits from being filed.
Who Needs an Asset Protection Attorney in California
Many mistakenly believe that only wealthy individuals need an asset protection attorney. In truth, virtually everyone can benefit from hiring one and taking their advice. Although the wealthy have the most to lose and are the most likely to be sued, no one is safe from a lawsuit in California.
Here are a few groups that could benefit most from a California asset protection attorney’s services:
- Business owners & entrepreneurs: With every dollar they earn, business owners become more appealing to lawyers. Everyone, from former employers to disgruntled contractors, could file a suit against you.
- Doctors, dentists, and licensed professionals: Anyone working in the healthcare industry is at risk of being sued by a patient. The risk of a malpractice lawsuit is highest for emergency medicine workers, like surgeons and ER doctors.
- Real estate investors: Real estate transactions are part of the public record unless you utilize land trusts. Contingency fee lawyers often scour public records for these transactions and find someone interested in suing the investor.
- Anyone with significant savings or valuable property: The more assets you accumulate, the greater the incentive for someone to sue you.
Common Threats to Assets in California
As we mentioned at the beginning of the article, there are more lawsuits in CA than in any other state. Sadly, that’s not the only threat to your wealth in California. Here are some of the most notable threats to your assets:
- Frivolous lawsuits: In the United States, entire legal fields are dedicated to pursuing wealthy individuals. If your wealth is public and unprotected, it’s only a matter of time before you get sued.
- Creditors and debt collectors: When your debts grow large enough, creditors can sue you to recoup their losses. If you don’t have protective measures in place, they can take almost everything you own.
- Divorce and family law issues: California’s community property laws can put 50% of your wealth in the hands of your ex-spouse.
- Business disputes: Without an asset protection plan, your business disputes may spill over into your personal bank accounts.
Major Benefits of Hiring an Asset Protection Attorney
Working with an asset protection attorney is always a good idea if you plan to establish wealth safeguards. Some of the most notable benefits they provide include:
- Customized strategies: No two people need the exact same asset protection strategy. A capable attorney understands this and will build a unique strategy that has few, if any, weaknesses.
- Avoidance of legal missteps: DIY legal setups often have vulnerabilities. One mistake and a court could pierce the asset protection strategy you crafted by yourself.
How to Choose the Right California Asset Protection Attorney
Choosing a capable asset protection attorney isn’t as easy as performing a quick Google search. To find the absolute best one, you need to dig through their reviews and services. As you research your attorney options, favor those who:
- Specialize in asset protection, not just estate planning or business law.
- Have experience with high-risk clients (business owners, professionals, investors).
- Are familiar with California-specific asset protection strategies, like private retirement plans and limited liability company structures.
- Offer transparent pricing and clear communication.
Focusing on these factors during your search greatly increases your chances of finding a quality attorney. Alternatively, you can reach out to Asset Protection Planners! Our team of asset protection specialists and attorneys has worked in this industry for decades. We’ve set up countless trusts to defend Californians’ assets and can do the same for you!
Call Asset Protection Planners and Defend Your Wealth in California
In a state where lawsuits are practically a pastime, waiting to protect your assets is a gamble you can’t afford. A capable California asset protection attorney can provide the peace of mind and long-term security you need.
Don’t wait for a lawsuit to put your wealth in danger. Schedule a consultation with Asset Protection Planners today to put a real defense system around your future.
