What is asset protection law?

Asset protection law is the set of legal measures used to protect an individual’s assets from creditors. These measures are designed to keep an individual’s financial security safe, even if they are faced with financial hardship or litigation. In Virginia, asset protection laws are governed by the Virginia Code and the common law of trusts. Under the Virginia Code, individuals are able to transfer property and funds into a trust or other legal entity in order to protect them from creditors. The trust or legal entity is separate from the individual, so if the individual is sued or declared bankrupt, the property and funds held in the trust or entity are not included in the individual’s estate and cannot be seized by the creditors. In addition to the Virginia Code, individuals can use common law trusts to protect their assets from creditors. These trusts involve the transfer of property and funds to someone other than the individual. The funds are held in trust by the third party, who is not responsible for the debts of the individual. This provides the individual with additional asset protection as they are not responsible for any debts incurred by the trust. To be fully protected under asset protection law, an individual should make sure they properly document any transfers of funds or property into a trust or other legal entity. Furthermore, the individual should consult a qualified lawyer or financial advisor to ensure the asset protection plan is properly structured and executed.

Related FAQs

Are there any state or federal laws that protect assets from creditors?
What types of asset protection trusts are available?
Is it possible to protect my assets from government seizure?
What is the difference between an irrevocable trust and a revocable trust?
What are the drawbacks of an offshore trust?
What is the difference between fraudulent transfer and fraudulent conveyance?
What is the difference between asset protection and estate planning?
What is fraudulent conveyance?
What is an insurance trust and how does it work?
What is the difference between an offshore trust and a domestic trust?

What is asset protection law?

Related FAQs

Related Blog Posts