It’s not surprising that the United States is high on the list of countries with the most lawsuits. So when you are self-employed or a business owner, there is a good chance that someone will sue you. Whether alive or after you have passed away, even if you did no wrong – someone wants your money. Putting all of your assets in your will does not always protect them from creditors and lawsuits.
So how do you protect your assets from lawsuits?
There are various trusts that an estate planning attorney can help you establish. But it’s important to understand what type of trust will protect you and your heirs from creditors and lawsuits.
Irrevocable Trust
With an irrevocable trust, you can transfer ownership of your assets into the trust. It legally removes you as the owner and therefore can’t be taken from you by a creditor or lawsuit. But you can still use and enjoy the assets while you are alive.
A well-written trust is sometimes preferred over a will. With a trust, you can avoid probate court, saving you time and money. Also, a trust is private where a will going through probate court becomes public information. A trust also allows you to minimize estate taxes when passing the assets to your heirs.
But, you must be careful of who you name as your trustee. With an irrevocable trust, you cannot easily change ownership of the assets back into your name – so this is not a temporary solution; this is long-term. The trustee will turn over the assets to the named heir when you pass away.
When establishing an irrevocable or offshore trust, you must work with an estate planning attorney who is familiar with the law and understands your unique situation. Being self-employed means you can sometimes be a target for lawsuits and must protect your assets.
Consulting with us can give you peace of mind for your future. Our estate planning lawyers will help you create an irrevocable trust that will help protect your assets from lawsuits. Contact the Estate & Probate Legal Group at 630-864-5835.
We serve Cook, DuPage, Kane, Lake and Will counties.
