FAMILY ASSET PROTECTION
“Asset protection” is the use of legal structures to protect your personal assets from creditors, civil money judgments and administrative penalties or fines. The goal of asset planning is to protect your net worth within the bounds of the law (i.e., without engaging in fraudulent concealment or tax evasion). If you or your family is engaged in any profession or business that might expose you to civil liability, then it is prudent to explore the options for securing your personal assets against a catastrophic loss. Generally, business entities such as corporations, partnerships and limited liability companies are intended to be for commercial purposes and are not meant to operate as a personal expense fund. When you commingle personal and business assets you risk exposing both to creditors and judgment holders. Potential plaintiffs and creditors have a number of tools available to help them recover what they claim they are owed. These include federal bankruptcy laws and state laws against fraudulent transfers. Most states, including Mississippi, have adopted the Uniform Fraudulent Transfer Act (Miss. Code Ann. §15-3-101 to 15-3-121).
The First Rule of Asset Protection
The number one rule in individual asset protection is to start planning long before a serious claim or problem arises. Before the problem arises you usually have several options available to minimize your risk. However, your options are much more limited once the problem occurs. Proper asset protection planning involves identifying the best structures to accomplish your personal goals.
An important piece of any asset protection plan involves having the right insurance in place. There are any many types of insurance available. Unfortunately, there are also many different types of exclusions that insurance companies incorporate into their policies to limit the actual coverage provided. Our lawyers have the experience to answer your insurance questions and help you chose the right combination of policies.
Contact us to discuss your protection needs
Contact us online or call our office locally at 601-957-3101 to schedule a consultation.