Altus Law Group can assist you with organizing your assets to make them less vulnerable to creditors, predators, bankruptcies and divorces. We provide advice on protecting all types of assets (e.g., cash, stocks, bonds, business interests, and real property). We can recommend the transfer of what might be otherwise non-protected assets into a more protected form. It is important to conduct such transfers prior to the existence of a potential creditor claim. Attempting to protect assets while a creditor claim is either pending, threatened or expected could expose you (and your attorney) to either civil and/or criminal liability. Proper asset protection can assist in deterring potential creditors from initiating litigation. All parties involved should utilize competent legal counsel for these decisions.
Typical Forms of Asset Protection
Retitling of certain individually owned assets into Joint Ownership or Tenants in Common. Depending on the situation, one may have an advantage over the other with respect to certain assets.
Gifting. Transferring title to someone else’s name. Obviously, due to potential pitfalls involved with gifting, such transfers must first be extensively analyzed with competent counsel.
Converting non-exempt property to exempt property. Altus Law Group can help you utilize various exemptions, such as the homestead or life insurance exemption to help ensure these types of assets are protected to the fullest extent pursuant to Colorado law.
Insurance. Ensuring proper insurance policies with appropriate coverage and limits goes a long way in helping to lessen the stress involved with litigation.
Legal entities. Utilizing legal entities (e.g., a limited partnership or a limited liability company) can be used to diversify and help protect your assets. In this scenario, assets that would otherwise be attractive to a judgment creditor are rendered unattractive or at least less attractive as the individual no longer directly owns the subject assets. A creditor must seek to satisfy his or her claim or judgment from the partnership or member interest received in the exchange of assets.
Domestic Asset Protection Trusts (DAPT). Altus Law Group can assist in drafting and funding a DAPT subject to the laws of the State of Nevada (which arguably has the strongest level of protection of the 17 states that currently have such a statute). We will advise how you can (i) create the trust; (ii) fund the trust with a certain level of your individually held assets; and (iii) remain the beneficiary of the trust while protecting your assets from future potential creditors once the applicable statute of limitations period has expired. We often combine a DAPT with an underlying limited partnership or limited liability company, which can hold certain types of assets and offer an additional level of asset protection. Please feel free to contact us in order to learn more about this highly effective asset protection tool.