Navigating Asset Protection In New York

Read this article if you:

• Are interested in trust based asset protection.
• Need advice on choosing an asset protection attorney.
• Want to understand what a grantor trust is.

What Type Of Trusts Can I Use To Protect My Assets?

Asset protection law can quickly become complicated, but this article aims to simplify it.

In terms of true asset protection, there is a lot of debate in New York whether or not a grantor trust can be used for asset protection, which is a Medicaid trust. If there was a creditor against a client-created irrevocable Medicaid asset protection trust, which was a grantor trust, some think the creditor could reach the entirety of the trust in New York State. Others think that the creditor could only reach the retained income interest of the creator of the trust. If it affects, an income interest is reserved, which typically is Medicaid trust. The reason there’s debate on it is because it has not been decided.

There are certain jurisdictions where you can create grantor trusts that are asset protected. Can these protect your assets after you die? Not for you, but yes, they can. These would allow for a trustee to manage a trust over a beneficiary.

How Do I Choose The Right Asset Protection Attorney If My Assets Are Complex?

Answering in any meaningful detail depends on your individual circumstances. Any good attorney is an honest attorney, after all.

Are There Tax Consequences To Asset Protection And Is It Legal?

There are tax consequences to everything, asset protection law included. Some are neutral, some are positive, and some are negative.

Asset protection is legal of course, but there are certain things you cannot do. So, for example, if you are getting sued for a million dollars, you cannot just take all your money and give it to your spouse or child, or create a trust. This is called fraudulent conveyance.

If you are getting dogged by creditors as it is, doing something like this will only capture more of their attention.

With the guidance of a skilled attorney for Asset Protection Law, you can have the peace of mind that comes with knowing that we’ll make it look easy. For more information on Asset Protection in New York, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (516) 888-5381 today.