Although it offers limited protection from the point of view of this author, it creates an additional obstacle for a creditor. For many families, their home and retirement account make up the bulk of the value of their estate. Washington`s law generally provides that eligible retirement accounts and annuities are «exempt from enforcement, seizure, seizure, or seizure by or in connection with legal proceedings.» RCW 6.15.020. You will find that strategies such as hiding assets in an offshore bank account or hiding gold in the desert 10 feet underground are conspicuously absent from this list, as intentionally hiding assets is not a legal method of asset protection. The policies listed below are legal. But there is no magic way to fully protect every asset of every creditor. While there is no magic method to protect your wealth, by using a combination of the strategies outlined above, a person can maximize their wealth protection. And your creditors also know that we will fully declare their property rights when it comes to seeking bankruptcy protection here in Washington State. In fact, as discussed in more detail above and below, the simple truth is that the vast majority of our bankrupt clients do not lose a single asset when they file. The only thing they lose is their debts. You have worked hard to make money and you want to keep it and pass it on to future generations.
But a divorce, professional liability claim, car accident, or large medical bills can derail your financial plans. Fortunately, there are asset protection strategies you can use to protect yourself and your estate from claims from future creditors so you can pass on a financial legacy to future generations. The Asset Protection Society strives to keep the material on its websites up to date and accurate. However, APS does not guarantee the material on this website and you should ALWAYS seek the advice of a local consultant in your state who can advise you individually for your particular situation and confirm the status of your state laws. Asset protection services are becoming increasingly important as the number of divorces, lawsuits and bankruptcies continues to rise. To learn more about how asset protection trusts work, click here. If you do have significant assets that cannot be fully protected by exceptions, pre-insolvency planning may be necessary. For the majority of insolvency customers, however, this is not a problem. Our bankruptcy lawyers will find a way to legally exempt or protect 100% of your belongings. Instead, the different strategies each have different effectiveness, convenience, and ease of implementation. So what tricks and techniques can we legally use to protect assets? Read on.
If you lived in Washington State for at least 24 months before filing for bankruptcy, you can choose federal or Washington State exemptions to protect the maximum value of your property. However, if you lived in Washington State less than 24 months before you filed for bankruptcy, you will need to take advantage of the exceptions of the state where you lived most of the 25 to 30 months prior to filing for bankruptcy. An additional needs trust can be created for anyone who needs government benefits in the future or needs help protecting their assets. A trust that protects your assets can help ensure that you are not wiped out by a lawsuit or bankruptcy. If you regularly make annual gifts to a child (for example) and later go bankrupt, it is unlikely that these gifts can ever be returned to the debtor`s bankruptcy estate to satisfy creditors. Not only does the gift offer potential protection against creditors, but it can also be structured in a way that reduces or eliminates inheritance tax. • It can be set up as a living trust (intervivos) or a testamentary trust (by will). • Allows parents of children to contribute additional funds to supplement existing government benefits and other forms of assistance. • Allows those who have been seriously injured to receive personal injury compensation or other compensation to protect their funds to remain eligible for state or federal benefits. • You can protect the funds of a surviving spouse who may need long-term care services without interfering with existing long-term care requirements for Medicaid. Washington law allows a number of companies that can protect your assets.