Understanding the Threat: How Creditors can Access your Property
Your First Line of Defense: New York's Homestead Exemption
Limited Liability Companies (LLCs): Creating a Legal Barrier
Best Practices for LLC Asset Protection
Keep finances completely separate
Maintain proper records
Operate in the LLCs name
Consider multiple LLCs
Carry adequate insurance
Irrevocable Trusts: Maximum Protection with Serious Trade-Offs
When Irrevocable Trusts Make Sense
Estate planning integration
Medicaid planning
High-risk professions
Critical Timing Considerations
The general rule of thumb? Plan ahead when times are good. Once you're facing a lawsuit or know a creditor claim is coming, it's too late for this strategy.
New York's Limitations on Asset Protection Trusts
I should mention that New York doesn't recognize "self-settled" domestic asset protection trusts (DAPTS) – where you transfer property to a trust but remain a beneficiary.
Strategic Debt Structuring: Equity Stripping
How Equity Stripping Works
Important Caveats about Equity Stripping
Asset Titling Strategies: Tenancy by the Entirety
Maximizing your Retirement Account Protection
Comprehensive Insurance: Your Critical First Defense
The Danger of DIY Asset Protection
Taking Action: Your Next Steps
1. Assess your current risk level
2. Review your existing protections
3. Identify gaps
4. Consult with an experienced attorney
5. Act proactively
5. Personal services
6. Personal appearances and wellness
7. Recreation and instruction
8. Transportation and delivery
This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship.
For more information on this and other topics, please contact Kevin via any of the channels listed below:
📧 kevin@kmckernan.com | 📞 718-317-5007