Asset Protection Lawyer Schaumburg IL
How Safe Assets Are in an Irrevocable Trust?
Bott & Associates, Ltd. is an asset protection lawyer Schaumburg, IL residents turn to for help protecting their assets from any number of potential threats. The process of asset protection can be complex as it involves a number of laws which can determined by various jurisdictions and countries. If you are concerned that your assets are vulnerable to unlawful or immoral seizure, contact our asset protection lawyer in Schaumburg, IL. During that consultation your circumstances will be considered and you will gain a greater understanding of how we can help you.
What is asset protection?
Asset protection is the process of protecting the assets of companies and individuals from civil litigation awards. Our asset protection lawyer in Schaumburg, IL uses various legal techniques while following statutory and common laws that pertain to assets and their possible seizure and liabilities.
What types of assets are automatically shielded from creditors by law?
There are exceptions to the rule, but your asset protection lawyer in Schaumburg, IL may advise you that in most cases, the following types of assets for which you may hold title are not reachable by creditors:
- Certain types of retirement plans.
- One’s interest in a limited liability company or in a limited partnership.
- Some home equity.
How does asset protection compare to declaring bankruptcy?
Asset protection and declaring bankruptcy can be very similar and work together well, but if you own very little in the way of assets, an asset protection lawyer in Schaumburg, IL may advise you to only declare bankruptcy. However, if you own a significant amount of assets, your best solution is to pursue asset protection.
What is the value of undergoing asset protection?
When a person or a commercial entity does not have sufficient economic incentive to pursue you in a court of law, they will likely avoid what can be a costly process. Even if the plaintiff has no legal grounds on which to pursue your assets, the process of defending yourself in a court of law proving you are in the right can be very expensive and time consuming. Asset protection achieved with the help of an asset protection lawyer in Schaumburg, IL can make you a less attractive target. Call Bott & Associates, Ltd. today to arrange a free consultation with an asset protection lawyer Schaumburg, IL community members turn to for effective solutions.
Using Irrevocable Trusts to Protect Your Assets
One of the main goals of estate planning in Schaumburg, IL is to minimize estate and income taxes while transferring a grantor’s wealth to the future generations. One way to achieve this goal is by placing assets into an irrevocable trust, which then removes that property from the grantor’s possession. But are irrevocable trusts safe?
When using an irrevocable trust, the trust requires all control and ownership of the assets placed in the trust to be relinquished by the grantor. This could make a parent hesitant to put their child’s inheritance in this type of trust. What would happen in the beneficiary of the trust gets a divorce or is financially irresponsible? Will the irrevocable trust be able to protect the assets from an ex-spouse or creditors?
An asset protection lawyer from Bott & Associates, Ltd. can answer all your questions in detail. In the meantime, the following is a brief overview.
Basics of Trusts
- Irrevocable Trusts: An irrevocable trust is a living trust that cannot be changed. Once the assets are transferred into the trust, the trust becomes the owner of the asset.
- Grantor: The person who transfers ownership of their assets to the trust.
- Trustee: The person or corporation that is responsible to manage the property in a trust as well as carry out the function and purpose of the trust.
- Beneficiary: The person the trust was created for and who will receive the benefits from the trust.
Something important to note is trust interpretation is defined by the state. Courts are able to use the trust documents to decide if a beneficiary can control over the distributions of the funds. If the court decides that the beneficiary does not have control, then the assets cannot be considered a marital asset if there is a divorce and the assets in the trust cannot be accessed by creditors.
Who Has Rights to the Money?
An irrevocable trust can become complicated once divorce or creditors become involved. It is the job of an asset protection lawyer to help educate you to ensure these assets are protected. There are a few provisions that you should know to help protect the assets you wish to leave to your heirs:
- Powers of Appointment: These provisions allow the beneficiaries to create new beneficiaries to share the assets. However, the greater the powers of appointment, the higher the risk becomes that the assets will be exposed. This can allow trust assets to become exposed in a divorce or by creditors.
- Beneficiary as trustee: A grantor could choose to make a beneficiary also the trustee. By doing this, the assets then can become vulnerable in debt settlements and divorces.
- Mandatory Income: Trusts usually have a provision that is mandatory and states that the trustee will need to pay income to the beneficiary. The mandatory income payment is considered a marital asset in some states.
The Best Preparation
By working with an experienced asset protection lawyer Schaumburg, IL clients recommend, you can learn how trusts work and the risks associated with them. If you are considering creating an irrevocable trust to protect your assets for your next generation, you should speak with an experienced attorney. By knowing the potential risks of different types of trusts, you can make the best decision for your family. Call Bott & Associates, Ltd. today to set up a consultation to discuss all your asset and estate planning needs.