It’s unclear how long the current economic slump will last. It appears, however, that it’s not likely to change anytime soon. While the “times” have taken their toll on people, so have “creditors.”
If you want to protect your assets from “future creditors,” then know that planning must take place well in advance.
This article on the topic of “fraudulent conveyance” covers an important asset preservation principle. Simply put, the law looks unkindly on any last minute tricks that some people use to hide their assets when creditors come to call. You must admit, nobody would extend credit if those last minute tricks were allowed.
As a result, laws are set up to void slick moves to defraud creditors holding valid claims. In fact, those slick moves are aptly designated “fraudulent transfers.” Bottom line: If there’s already a creditor in the picture, then it’s may be too late to do anything to protect your assets against that particular creditor.
Of course, all of us have reason to protect our assets. The only way to do that effectively is to seek qualified legal counsel before making any moves with your assets. It is actually pretty easy to make small mistakes that will render your planning ineffective . . . or maybe even get you in legal trouble.
You can find more information here.