estate planning & asset protection

[almostparadise]

I am residing in Texas ,business owner in petro c-stores. Upon hearing lawsuits after lawsuits against business owners, i fear of losing all of my hard working assets to a frivilous lawsuit somewhere down the line. Having $1million insurance coverage policy doesnt seem to cover every detailed that surprises brings nowadays since folks are so greedy and lazy...always looking for a free meal.... which brings up 2 questions , #1 can we lose all our assets including our home (dwelling) , IRAs or what can they take and not take? #2 Is asset protection illegal means of hidding your assets from lawsuits and creditors or can we create an estate plan to achieve such goal?

TIA...

 

[ALawyer]

My first advice is to increase your insurance liability limits.

Second, it may be wise to operate your businesses as a coproration or LLC so it, not you, would be liable for losses and claims resulting from business operations.

In Texas you have ther benefit of a major homestead exemption, even in bankruptcy, unless Congress changes the law.

But ordinarily it is NOT wise to go crazy and completely try to protect yourself, with complicated foreign trusts, etc, as the costs are high and your assets then are at risk of foreign appropriation.... There are people out there who gretaly by raising fears and offer their sometimes dubious and always EXPENSIVE "solutions". Read asset protection under Estate Planning on FreeAdvice.

 

[almostparadise]

First of all i would like to thank you for your time and comments. Much appreciated!

posted by ALawyer
"My first advice is to increase your insurance liability limits"

Response: But by increasing your limits doesn't that makes it more attractive to lawsuits when lawyers go thru to screen your assets? Doesnt it also provide an unbiased decision for juries to based upon..ie ... " he has alot of coverage lets give the plaintiff who is wearing rag clothes that his lawyers told him to do" which results in increasing policy premiums.


In a couple of weeks I will be attending an asset protection "seminar"...they are selling a $3000 package . It will cover Limited Partnership according to one of my colleagues. To my understanding....He explained to me by putting assets in a LP and the interest in Living Trust will protect the asset and probate. Is this true?? Does the LP serve as a seperate entity? or is it like a contract between 2 partners, because he said something like move my assets in LP then lease it back to my company....if this is the case, then the company deducts rental expense on tax return (which is me??) then the rental proceeds that goes to the LP is another income which i have to file tax again???

TIA