Asset protection planning is a form of estate planning that is designed to protect your assets from claims of creditors. These techniques are used to deter creditors from seizing your assets or collect judgements against you.
People who are in professions that involve high risk such as physicians and paramedics, pilots and recreational flyers should consider asset protection strategies. Other professionals such as political figures, professional athletes, people with a high net worth, and other high profile individuals should also set asset protection strategies in place.
It is not a good idea to transfer your assets to family. In many states the property of spouses are considered community property and are deemed to be owned by both parties equally. In the event that you are able to designate assets as the sole property of your spouse you risk fraudulent transfer challenge by creditors and in the case of a divorce you will be in the position to argue that the assets in your partner’s name should in fact be awarded to you which is exactly the opposite of your initial intention.
It is also inadvisable to put your assets in your children’s names. For one, you will lose control of the funds once they turn 18. Secondly, if you transfer more than $13000 in assets per child you may have to pay a gift tax. Third, there is a tax on children’s income and transferring income to your kids will essentially be paying to give away taxes.
The best thing to do is to hire an attorney who is qualified and experienced in Estate planning. The Tulsa based Hayes Law Firm serves all of northeast Oklahoma including Tulsa county, Roger county, Wagner county, Creek county, Okmulgee county, and Washington County. We have the experience you can trust to protect your assets and ensure your family is taken care of in the event you pass away or creditors may go after your assets. Contact us at 918-392-4641 or fill out our online contact form and someone from our office will schedule your free initial consultation.