Are your assets protected from creditors, lawsuits and divorce settlements? If not, you should speak with your attorney about a plan to protect your financial assets and property. Protection is important to ensure you have funds for retirement and that your loved ones have a place to live after your death.
So when is it too late to protect your assets? It is too late if you already have a chance of having your items taken.
Creditor Judgment
If you owe money and that creditor has gone to court and has a judgment against you requiring you to pay that debt either with funds or property, it is too late to protect your assets.
Problems With Promissory Notes
If you owe money to a bank – anyone for that matter – and they have given you a notice of default it is likely too late to engage in effective asset protection. The more challenging question deals with asset protection steps you take if you only “anticipate” legal action.
Negligence Lawsuit Pending
If you suspect someone may try to sue you for an act of negligence it is already too late to defend your property. Whether a lawsuit is just a possibility or an actuality, any unprotected assets may be eligible for use to settle that case if you do not win.
Divorce Pending
If you have a divorce pending, it is too late to protect your assets. Any property at this point is considered marital property and will be divided according to the judge’s interpretation of state law. If you try to hide assets, you may lose them if you are found out.
What Happens
If you try to protect assets when it is too late you could get in legal trouble. If a judge determines that you have illegally protected assets, he or she may reverse that protection status and allow your belongings to be taken to settle the suit against you. You may also be found guilty of fraud.
To avoid this, you should begin shielding your assets before you ever suspect a reason to do so. Your attorney can help you safeguard your property and finances during the Advance Estate planning process.
Larry Parman
Attorney at Law
Since founding Parman & Easterday in 1985, Larry has led over 1,000 free, community-service education programs and helped more than 10,000 Oklahoma families go from putting off their estate plan to getting it done. His goal for every client is the same: to become the person their family calls "the one who took care of everything."
Larry is the author of three books: The Straight Shooter's Guide to Estate Planning; Estate Planning Basics; and Guiding Those Left Behind in Oklahoma. He served as Oklahoma's Secretary of State and Secretary of Commerce, and his firm is the only member of the American Academy of Estate Planning Attorneys in the state.
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