Protecting Assets

Anyone who owns enough assets to require estate planning to avoid taxes on the estate probably has enough assets that would justify asset protection planning. Asset protection planning is a tool used to protect assets that would otherwise be at risk of lawsuits or at the risk of claims of creditors.

In the past, planning to protect assets from the claims of creditors was done almost exclusively by high risk professionals. These high risk professionals included doctors who were subject to malpractice suits. To protect the assets of high risk professionals, asset protection frequently involved doing nothing more than shifting the assets to the non-professional spouse.

In the last twenty years or so, the drastic increase in litigation and large jury awards has caused more people to fear creditors. Everyone is now much more creditor-conscious. For this reason, if a person has enough assets to require estate planning, it is probably a good idea to consider asset protection planning to protect assets from creditors and others before death.

The easiest way of protecting assets is by owning “exempt” assets that are untouchable by creditors by state law. Some property may be entirely exempt, while other property can be exempt to a certain dollar amount.

Examples of some exempt property include:

• A person’s primary residence
• Household furniture and furnishings
• Clothing and jewelry
• Tools of trade or business

Contact an Austin Probate Lawyer

For more information on asset protection planning or estate planning, contact the Austin estate planning lawyers of Slater & Kennon at 512-472-2431 to discuss your options and to set up a consultation.

Centrally located in the Arboretum area of north Austin, the Slater & Kennon law firm represents clients in Travis County, Bastrop County, Burnet County, Williamson County, and Hays County, including the cities of Austin, San Marcos, Bastrop, Burnet, and Georgetown.