In property protection, several legal techniques and statutory laws are used to protect assets of individuals and businesses from monetary judgements by financial institutions. Property protection planning, on the other hand, is used to protect property from creditors with strict observation of tax and concealment policies. It is through this program of asset protection planning that a person can be protected from huge debts that would be incurred from facing the creditors.

Some of the techniques used in planning include; retitling various properties, moving funds to irrevocable trusts, maximizing IRAs contributions, using limited liability companies, or using the limited partnership of the family. In order to develop a proper strategy of safeguarding assets an attorney should be hired. His/her duties will involve discussing both short term and long term financial objectives of the program and also guide the client through the entire process.

Property protection plan is only valid in case there is no lawsuit in place. This is because the statutory laws prohibit defrauding of creditors if there is a warrant of arrest. This implies that the court would reverse any transaction of properties if the victim attempted to transfer his/her property in attempts of escaping creditors.Instead, the law requires that the plan should be put in place before the issuing of a lawsuit.

The planning aims at three major goals-short term, long term and particular goals of estate planning. Analysis of the short and long term financial goals of the project enables a person to plan the current and future income sources. Additionally, it also helps budgeting for the retirement needs and the amount of money to be passed to heirs after death.

After analysing the financial goals and drafting a financial plan, all the assets should be reviewed in attempts to ensure that they are safe from creditors. This can be followed by prepositioning if they are not protected. Additionally, a financial plan can also be used for future prepositioning if a person intends to acquire and protect his/her property from potential creditors.

The next step involves determining the net worth of both existing and future assets to be accumulated by the person. He/she would then use that information in developing a comprehensive estate plan for the management of the property. The plan is also used to address other social issues such as identifying the caretaker of the person in case of mental disorder. In addition, it is also used to address other issues like identifying the heir of the family and assets in case of sudden death.

Property protection programs are usually run with the aid of specific estate planning techniques. The main ones used for this purpose are family liability companies and irrevocable trusts. They aim at taking care of the family wealth as well as other beneficiaries.

It is recommended that an asset protection plan should only be prepared once the financial goals are matched with the estate planning objectives. This also includes ensuring the positioning or prepositioning of all properties to be safeguarded from the creditors. Until then, no negotiations can be made with the creditors if there is a lawsuit.

Read more about The Need For Asset Protection Planning.