Is it legal to use asset protection strategies?

Yes, it is legal to use asset protection strategies in Tennessee. Generally, asset protection strategies involve a variety of legal techniques used to protect a person’s assets from creditors and others who are seeking to collect on a debt or judgment. By utilizing asset protection strategies, a person can shield their assets from creditors while still maintaining their financial goals and desired lifestyle. Some of the asset protection strategies available in Tennessee include creating legal entities, such as limited liability companies and trusts, which have the potential to protect certain assets from creditors. In addition, Tennessee law permits certain types of transfers of assets to another person or legal entity that may be protected from creditors if the transfer is made in good faith and for fair market value. It is important to note, however, that asset protection strategies are not a form of fraud or evasion and should not be used to evade a legitimate debt. A person who attempts to use an asset protection strategy for an illegal purpose may be subject to civil and criminal penalties. Additionally, asset protection strategies must be implemented before a person incurs the debt they are trying to protect themselves from. In short, it is generally legal to use asset protection strategies in Tennessee as long as the purpose of the strategy is to shield assets from creditors, and the strategies are implemented prior to the incurrence of the debt.

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Is it legal to use asset protection strategies?

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