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Asset Protection

Asset protection uses various legal techniques to protect assets of individuals and businesses from judgments. The key to asset protection is starting early.

If you wait to begin your asset protection plan until after you have been sued, you may run afoul of Maryland's Fraudulent Conveyance Act.

Asset Protection is Not:

(1) Hiding assets. The purpose of asset protection is to protect your assets and not "hide" them from creditors.

(2) Defrauding creditors. Defrauding another individual or business is improper and most of the time unlawful. Asset protection helps shield your assets in a lawful manner.

(3) Evading taxes. Similar to defrauding creditors, evading taxes or hiding assets from the Internal Revenue Service (IRS) or other taxing authority is improper and unlawful. An effective asset protection plan may help take advantage of various tax benefits or it could raise your taxes - it all depends on your unique situation.

Asset Protection May Provide:

(1) Security. If your assets are structured properly, creditors may find them unattractive or unreachable. The key is to structure your assets before a debt or liability is incurred, which is often too late to legally begin protecting your assets.

(2) Privacy. In the modern age of the Internet, it is very easy to determine an individual's wealth because of public records. A properly implemented asset protection plan will help limit your personal exposure in the public databases.

(3) Peace of mind. The less you, as an individual, owns, the less you will have to worry about your assets. A good asset protection plan will allow you to control everything, while owning little to nothing in your name.

The Proy Law Firm can help you with your asset protection needs:

- Corporations

- Estate Planning

- Leases and Contracts

- Family Limited Liability Companies (LLCs)

- Partnerships 

- Titling Houses and Other Real Property (often "Life Estate Deeds")

- Irrevocable Trusts