If you have wealth or you’re in a profession like medicine or law, you’re at high risk of being sued. You may worry about protecting your assets in case litigation arises. But don’t believe any protection planner who guarantees a structure will work.
Determined judgment creditors may vigorously attack your asset protection trusts or business structures in court. And judges do not like judgment debtors who have transferred assets out of the court’s reach. If they cannot reach your assets, they may reach your behind and put it in jail for contempt of court.
Although nothing guarantees protection, tools like asset protection trusts most likely will slow down or deter some potential judgment creditors. And you may also benefit from state and federal exemptions that protect certain assets from creditor claims with a little careful planning.