A debtor’s personal residence is a natural target of his or her creditors. Some states (Florida, in particular) provide special protection for your home against claims of creditors. Currently, Florida’s protection is so strong that some debtors have re-located to Florida solely to take advantage of this protection. Texas also provides a very strong homestead exemption. Ohio, however, currently provides
Irrevocable Life Insurance Trusts Provide Excellent Asset Protection
Irrevocable life insurance trusts (ILITs) can be a great estate planning tool under the right circumstances. ILITs have the added benefit of providing significant asset protection.
Life insurance owned by an ILIT is not generally part of the insured’s estate (for both federal and Ohio estate tax purposes). An ILIT will be most effective if it
LLC Better than a Corporation for Asset Protection Purposes
A limited liability company (LLC) will generally provide better asset protection to its owner than a corporation.
A limited liability company (“LLC”) is a hybrid type of legal entity that has some characteristics of a corporation and some characteristics of a partnership. Owners of an LLC are called members; they can elect to receive pass through tax
Traditional Asset Protection Is Frequently the Best
There are many asset protection strategies, and the more expensive and complex ones are not always the best. I like the comment made by Jay Adkisson (a nationally recognized asset protection planner) in the May 11, 2009 issue of Forbes Magazine. He basically says the best ways are the old ways.
While that is a big generalization, there
Piercing the Corporate Veil
Corporations and limited liability companies (LLCs) provide significant liability protection to their owners. Shareholders of corporations and members of limited liability companies generally are not responsible for debts of the corporation or LLC. A recent Ohio case, however, serves as a reminder that creditors may attempt to "pierce the corporate veil" and hold an owner