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How To Protect Assets From Creditors

One of the primary goals of estate planning is asset protection. With the recent increases in the estate tax exemption (from $2 million in 2006 to $5.45 million in 2016), estate taxes are becoming a nonissue for all but the largest estates in Oklahoma. A bigger concern for most people is protecting their assets from lawsuit judgments.

At Postic & Bates in Oklahoma City, our estate planning attorneys help families protect their estates from creditors through the creation of a Limited Liability Company (LLC) or a Limited Partnership (LP). Our lawyers generally prefer the use of an LLC, since the general partner in a LP is still liable for lawsuit judgments.

LLCs And LPs Are Not Just For Business Ventures

Running a business involves risk. People breach contracts. Patients sue for malpractice. Investments go bad. Business owners form entities that help shield their personal assets from professional litigation. You can do the same for your family.

Think about this: One car wreck lawsuit can have a devastating effect on your estate. Your car insurance may cover $300,000 of liability. However, if you cause an accident that seriously injures or kills someone, a lawsuit judgment could be $1 million or more. You could be personally responsible for damages above the $300,000 in liability insurance.

Typically the assets in Oklahoma that are protected from creditors are a person's home, retirement plans, life insurance, a car up to a certain value and household items and clothes up to a certain value. General savings and investments, real estate and bonds are all things a creditor could take.

A family LLC can be the icing on the estate planning cake. In addition to liability protection, the LLC can offer income tax benefits.

Call Us For More Information And A Free Initial Consultation

For more information about asset protection and tax benefits of an LLC or LP, call to schedule a free initial consultation with an attorney at our firm. Call our office at 405-814-6524, toll free at 800-575-6838 or send us an email.

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