Chicago IL Asset Protection Attorney
Life is full of unforeseen circumstances, and one of the principal goals of proper estate planning is to minimize the amount of damage that these unforeseen circumstances can have on your assets and property. Whether due to lawsuits, creditors, and taxes, proactive asset protection is a comprehensive method of preserving wealth and making sure that your assets aren’t dramatically affected by these situations.
Asset protection is often misunderstood, and it can be difficult to know, exactly, how to protect your money, property, and other assets. With the help of Chicago IL asset protection attorney James C. Provenza, you can receive industry-leading legal counsel and advice to make sure that the necessary asset protection tools are in place. For a free consultation with James C. Provenza & Associates about your wealth preservation strategies, call our law firm today at (847) 729-3939.
Illinois State Asset Protection Laws
In general, asset protection in Illinois is a proactive method protecting your property and holdings from creditor or predator attacks. Often, successful individuals, such as doctors and business owners, are targets for lawsuits, whether or not that lawsuit is justified. And even if the lawsuit is unjustified, you may end up spending a lot of money defending yourself.
Some high-risk individuals who may need asset protection include physicians, surgeons, business owners, real estate investors or developers, attorneys, CPAs, or members of a profession that is subject to an unusually high number of lawsuits.
To minimize liability and better protect your assets, some techniques may include:
- Family Limited Partnerships — A limited partnership in Illinois is a business entity often used for asset protection. A family limited partnership (FLP), on the other hand, is a partnership intended to hold a family business or investments.
- Homestead Exemptions — No matter what comes your way, farm owners or owners of a fair amount of land can benefit from Illinois’s $15,000 homestead exemption.
- Life Insurance and Annuities — Death proceeds and the cash value of life insurance, endowment policies, and annuity contracts are generally exempt from creditor attacks and lawsuits, as long as the proceeds are deemed reasonably necessary for the support of the debtor and his/her dependents.
- Offshore Asset Protection Trusts — Moving assets offshore serves as a powerful asset protection strategy when facing the limitations of US courts and US-based assets.
There are many other asset protection strategies suitable in Illinois, including IRAs, corporate protections, business acts, disability benefits, and so forth.
A Problem With Illinois Asset Protection Planning
It is critical to note that Illinois does have fraudulent transfer laws, which means that it’s illegal to transfer property to “hinder, delay, or defraud” someone owed a debt in order to avoid paying that debt. As such, there is little you can do once a claim has already been made.
Asset protection is effective (and allowable) when an individual is seeking to protect against unseen future risks. However, there is still an issue: proving to the courts that you transferred assets as a means to protect against future risks (as opposed to avoiding a claim). For this reason, having an experienced and competent estate planning attorney is essential to comprehensive asset protection.
Contact James C. Provenza & Associates Today
At James C. Provenza & Associates, a Glenview IL-based estate planning law firm, we boast decades of experience helping individuals with all of their estate planning needs. Including wills, trusts, and so forth, we can help develop and guide a proactive asset protection plan that aims to safeguard against unforeseeable risks.
Ideal for doctors, attorneys, business owners, and others, if your occupation makes you at-risk for lawsuits or other predatory attacks, then call James C. Provenza & Associates to protect your assets against these unforeseen possibilities. For a free consultation, call us now at (847) 729-3939.