Gifting your loved one something expensive for Valentine’s Day? There are many ways to legally and ethically protect your major assets...but don’t overlook “smaller” ones. Asset Protection can be used to protect all your assets, including the gifts you or a loved one might receive on Valentine’s Day.
Title Jewelry to a Limited Liability Company (LLC)
Jewelry is one of the most popular gifts given on Valentine’s Day. But that new watch, necklace, or pair of earrings isn’t safe from creditor seizure. Yes, even jewelry needs protection. Here’s what you can do for protection: Transfer the jewelry to an LLC, particularly if the asset may increase in value
Remember: never conceal or hide an asset -- no matter how inconsequential its value may seem. It can be a serious offense. Creditors can discover that expensive piece of jewelry.
Shelter Your Bank Accounts
Cash is always a good gift, even on Valentine’s Day. But cash is an asset that definitely needs protection. Make your cash accounts difficult for a claimant to get their hands on.
For spouses, you may safely title cash in tenants-by-the-entirety accounts in states that protect them. If you have significant cash, operating separate accounts through different entities is wise. Title your liquid assets to a Limited Partnership. Substantial accounts (more than $500,000) should be kept in international jurisdictions, titled to an international trust or foreign LLC.
If your smaller cash accounts are in imminent danger, spend down the account. Options include:
-
Sprinkle cash gifts (small transfers are usually unchallenged as fraudulent transfers)
-
Reduce the debts against exempt assets
-
Buy exempt assets with spare cash
-
Pay friendly, preferred creditors
-
Pay debts non-dischargeable in bankruptcy
-
Prepay future expenses
Title Vehicles to One Individual
Gifting your significant other a car this Valentine’s Day? Your automobiles are one of the first things a creditor will investigate. Remember: never co-own vehicles. Doing so only expands your liability.
Knowing that your assets are protected may be the best gift on Valentine’s Day. Call (561) 953-1050 or fill out our contact form on the top of the page to speak to an experienced Asset Protection Attorney today.
Related links: