What steps can I take to protect my assets from creditors?

Protecting your assets from creditors is important. Living in Maryland, there are steps you can take to protect your assets from creditors. First, you should create a Limited Liability Company (LLC). An LLC is a separate legal entity that is owned by you, the “member”. The LLC protects your assets by legally separating them from your personal assets. This creates a “wall” of protection between your personal property, such as your home and car, and your assets held in the LLC, making it clear to creditors which assets are under the LLC and cannot be touched. Second, you can create an Asset Protection Trust. Asset Protection Trusts are designed to protect your assets from creditors by transferring them to another person or entity, such as a trust or an LLC. This can help protect your assets from creditors, as they cannot access the trust or LLC. Third, you can transfer your assets into a “spendthrift trust”. Spendthrift trusts are set up to protect assets from creditors and to ensure that the assets will be used for the benefit of the grantor, rather than for the benefit of the creditors. Finally, you should consider creating an Irrevocable Trust. Irrevocable trusts are trusts that, once created, are no longer able to be changed or revoked. This type of trust is often used to protect assets from creditors, as the assets transferred to the trust are no longer legally owned by you, and therefore cannot be accessed by creditors. By taking these steps, you can ensure that your assets are protected from creditors. However, it is important to speak with a qualified attorney, who can go over the specifics of your situation with you and provide advice on the best way to protect your assets.

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