You’ve worked hard for your assets, so naturally, you don’t want to lose them to creditors or lawsuits. Asset protection planning in Maryland can shield your money and keep it out of the hands of anyone who tries to take it. Below, you can discover asset protection strategies to help keep your property safe.
Transferring and Retitling Assets
Transferring assets to someone else is a smart way to protect them because creditors can’t take assets you don’t legally own. You can transfer assets to your spouse, adult children, trusted friends, or anyone else you’d like.
If you’re married and own a home, Maryland assumes that you hold it under “tenancy by the entirety.” Tenancy by the entirety protects your home from creditors who come after the debts of one spouse.
It doesn’t protect you from jointly held debts, however. And if you divorce, this status reverts to a “tenancy in common,” which means creditors can seize the debts of whoever owns the property.
Purchasing insurance is one of the wisest strategies for asset protection planning in Maryland. Insurance works by transferring the risk from you to the insurance company. Homeowners’ insurance, for instance, protects your assets if someone hurts themselves on your property.
If you work in healthcare, law, or another high-risk profession, you can’t afford to go without professional liability or malpractice insurance. Without insurance, an angry client or patient can wipe out your hard-earned assets in a lawsuit.
Creating a Limited Liability Company (LLC) or Family Limited Partnership (FLP)
If you own business assets, transferring them to an LLC or FLC can keep them out of the hands of creditors. With this tactic, creditors can’t reach your assets because they legally belong to the entity, not you.
You can set up an LLC or FLC with help from your attorney. Once you’ve transferred assets to the entity, you can give limited partnership shares or membership to yourself and loved ones.
Protect Your Assets With Help From an Experienced Attorney
It’s never a good idea to leave your business or personal assets exposed to creditors. A knowledgeable estate planning lawyer can advise you on asset protection strategies that will safeguard your money and offer you peace of mind. We can also advise you on how to avoid fraudulent transfers that could put your assets at risk of seizure.
To learn more about asset protection planning in Maryland, call The Law Office of Ralph W. Powers, Jr., P.C. at (301) 627-1000 today.