Asset protection

Asset Protection Options

We have many ways to legally protect your assets. It is important to make an appointment with one of our knowledgeable attorneys to discuss these options so that you can decide on a viable strategy before your assets are directly threatened. Depending on your particular circumstances, we will help you choose the most practical and appropriate types of asset protection. The asset protections we offer include:

• Drafting pre-nuptial and post-nuptial agreements
• Constitution of irrevocable trusts
• Buying Full Coverage Insurance Policies
• Investment organization, including foreign bonds and international stocks
• Creating a corporation (LLCs are not responsible for personal debts)
• Establishment of charitable foundations
• Opening retirement accounts (for example, IRAs and 401(k)s)
• Purchase of annuities (Texas is one of the few states where annuities can provide protection)
• Give substantial amounts as gifts to your beneficiaries while you are alive
• Opening of savings plans for the university

It should be noted that revocable living trusts do not protect assets because the settlor retains the ability to modify or dismantle such trusts during his or her lifetime. Since irrevocable trusts not only give control of the money to the trustee, but also give that control permanently, the assets covered by an irrevocable trust are out of the reach of creditors or lawsuits. Irrevocable trusts have the added benefit of avoiding estate and estate taxes, further protecting your assets.

Texas offers excellent protections for homes and property

For one thing, Texas doesn't limit the dollar value of your home like some states do. By contrast, the pioneering spirit is alive and well in the Lone Star State, where your property is measured by the acreage: 200 acres that creditors can't touch. You are allowed to keep 200 acres unavailable to creditors, whether the land is valued at $500,000 or $50 million.

Your home itself, even if it is a residence in the city, at a distance from most of your other property, is protected, along with 10 acres of urban property. This is in addition to the 200 acres of rural property. There is one exception: if you are a single adult, you are limited to 100 acres of rural property. However, you should be aware that while these assets are protected from general creditors, they are not exempt from mortgage lenders or the IRS.

Your personal property is also protected, up to $60,000 for a family or $30,000 for a single person. Personal property in Texas includes: household furnishings (including family heirlooms), stored food, jewelry, automobiles, farm or ranching vehicles, clothing, pets, sports and athletic equipment, specified numbers of livestock (including 12 head of cattle) and two guns.

Financial Power of Attorney

A financial power of attorney is a legal document that allows you to designate someone to manage your finances and property for you. These tasks could include paying bills, making bank deposits, collecting your insurance benefits, and more.