Is it legal to use asset protection strategies?

Yes, it is legal to use asset protection strategies in Maryland. Asset protection is a collection of legal strategies which are used to protect assets from unforeseen risks, such as lawsuits, insolvency, bankruptcy, creditor claims, or other legal risks. In Maryland, the most common asset protection strategy is establishing a trust. Trusts are legal entities that allow owners to transfer their assets to a separate entity, usually managed by a trustee, to protect them from certain risks. The trust is governed by a set of rules which provide added protection for the assets held in the trust. Another asset protection strategy employed in Maryland is setting up a limited liability company or LLC. An LLC separates assets from personal assets and liabilities, so any debts or claims against the business will not affect the owner’s personal assets. Finally, Maryland also allows asset protection through offshore trusts and companies. This is a strategy wherein the assets are transferred to a separate entity outside of the United States, providing an extra layer of protection since such assets will not be part of the US legal process. Overall, asset protection is a legal strategy which can effectively protect assets from being taken away. Although setting up the necessary legal entities may seem complicated and expensive, asset protection can be a valuable tool in the long run to help protect one’s assets.

Related FAQs

What types of assets can be protected by asset protection law?
What are "charging orders" in asset protection law?
What is the difference between fraudulent transfer and fraudulent conveyance?
What is the difference between an offshore trust and a domestic trust?
What is a spendthrift trust?
How can I protect my business assets?
Can creditors take money from an asset protection trust?
How can I protect my real estate assets?
What documents do I need to establish an asset protection trust?
What is a limited liability company (LLC)?

Is it legal to use asset protection strategies?

Related FAQs

Related Blog Posts