A wealthy person has often thought they were protected from their spouse by a prenuptial agreement, only to learn the situation was not as safe as they thought. But there are other ways to be protected, according to Private Wealth in "Cracks In Your Assets?"
Another possible way of protecting assets, such as an individual business, is to turn that business into a partnership or LLC. However, that is not a perfect solution since the creditor can still intercept any payments from the entity to the wealthy debtor.
A newer solution is to create a self-settled asset protection trust. After a short period of time, assets in these trusts are untouchable by creditors.
Seventeen states now allow these trusts.
Another possibility is to use an offshore trust, since U.S. courts do not have jurisdiction over them in most cases.
A wills and trusts attorney can advise you on protecting your assets with a plan that fits your unique circumstances. Contact us today if you need any help with these kind of estate planning needs. We can have a free consultation to discuss what would be necessary for your situation.
Reference: Private Wealth (April 21, 2017) "Cracks In Your Assets?"