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Orange County Asset Protection Attorney

Orange County Asset Protection Attorney

As an Orange County asset protection attorney, I have found that if you are in business long enough, or if you have a big enough target on your back, it’s not if, but when you will be sued. In Orange County, California, we are home to several seven and eight figure judgments each year. The untold story is whether those plaintiffs ever collect a dime.

In asset protection, it all comes back to the old adage: “You can’t squeeze blood out of a turnip.” Or put in the context of asset protection, you can’t be forced to pay someone if you don’t have any money. Therefore, at its core, the simplest asset protection is giving away all of your money. Of course, if you gave away all of your money you no longer have the ability to support your needs and the needs of your family. As your asset protection attorney, we restructure your assets so that you have the best of both worlds. You assets are no longer in your individual name, but you still have access to the assets for your use.

Bulletproof Asset Protection

There are certain assets that are completely exempt from lawsuits. For example, 401(k) plans and other ERISA plans are typically exempt from seizure. Other exemptions include your home up to certain limits. In California the homeowner’s exemption is only $75,000. Everything else is up for grabs in California. So how do you we turn your current situation, which is full of easy targets in a lawsuit, into a bulletproof plan? I hate to be the bearer of bad news, but the short answer is nothing is bulletproof in asset protection. Any attorney that tells you that you are bulletproof against lawsuits is someone you should run from as fast as possible. However, we can make it very difficult and unrealistic for someone to sue you. For example, if a plaintiff has a potential $1,000,000 claim against you, but it will take 3 years and $1,000,000 in non-reimbursed expenses to recover, what is the likelihood the lawsuit will ever be filed? As much as asset protection is about protecting your assets from judgments, it is even more about making sure no one will ever spend the time and money to sue you to begin with.

Asset Protection Structures

Almost all asset protection planning requires a combination of structures to protect your assets. In other words, there is no “one size fits all” structure to protect your assets. The following are various asset protection vehicles our asset protection attorneys use to protect your assets:

  1. Domestic Asset Protection Trusts (DAPT)
  2. Offshore Asset Protection Trusts
  3. Irrevocable Gift Trusts
  4. Irrevocable Life Insurance Trusts (ILIT)
  5. Equity Stripping with Premium Financing and Home Equity Line of Credit
  6. Qualified Personal Residence Trusts (QPRT)
  7. Family Limited Partnerships (FLP)
  8. Family Limited Liability Companies (FLLC)
  9. Private Retirement Plan

As stated above, there is no “one size fits all” approach. For example, depending upon your business and your assets, we may set up a FLLC in Wyoming to own some of your assets, which are then owned by a Domestic Asset Protection Trust in Nevada. Your primary residence may be stripped of its equity using premium financing to then invest in an ILIT.

Biggest Asset Protection Planning Mistake

As an asset protection attorney in Orange County, CA, the biggest mistake I see with asset protection is the idea that forming an LLC in California is going to protect all of your assets. There are several problems with this concept. First, in California, the Court can foreclose on your LLC, which means your LLC will be liquidated to pay creditors. Therefore, all of your assets in your LLC may be distributed to creditors. Second, if you are sued for any action unrelated to the business of your LLC, all of your assets, inside and outside of your LLC, are subject to the collection by your creditors.

Experienced Orange County Asset Protection Lawyer

Orange County estate planning attorney, John L. Wong focuses exclusively in the areas of estate planning and asset protection and serves clients in Irvine, Costa Mesa, Mission Viejo, Tustin, Rancho Santa Margarita, Huntington Beach, Newport Beach and throughout the OC. If you are interested in asset protection for your assets, call us at (949) 371-5003 or contact our offices at Modern Wealth Law.