Nothing in life is a sure thing—especially when it comes to financial security. All it takes to threaten everything you’ve worked for is a bad investment or a serious injury. But with the right asset protection strategies, you can prepare for the worst while hoping for the best. Here, North Carolina’s C. Roland Krueger Attorney and Counselor at Law shares a few tips for getting started. 

How to Devise an Effective Asset Protection Strategy

1. Take a Proactive Approach

Taking steps to shield your assets from creditors or organizations like the IRS after a problem arises will constitute fraud and can result in severe penalties. To ensure everything you do is valid, honest, and legal, you must start implementing a strategy long before any issues actually arise. If you end up declaring bankruptcy, for example, transactions that occurred during the six months prior to filing are typically scrutinized. Anything that appears to resemble shielding assets during that time will warrant a thorough investigation.

2. Keep It Simple

A lawyer or financial planner might have a more comprehensive understanding of the various asset protection strategies available to you, but neither should propose something you do not understand. They might introduce you to creative financial arrangements, but you should still be able to explain them in your own words. If you cannot explain—or do not understand—where or how the assets are being held, it will jeopardize everything should you ever be deposed, questioned, or examined. 

3. Avoid Strategies That Demand Discretion 

No one likes talking about money, and there may be certain individuals whom you do not wish to disclose anything to, like an ex, a sibling, or an adult child—but a strategy that demands secrecy is likely fraudulent. Although you have every right to avoid discussing your financial position with friends, family members, or coworkers, recognize that at some point, you may have to disclose everything to lenders, judges, or IRS agents. If a strategy’s success depends on keeping one of these parties in the dark, it is not an approach worth pursuing.  

If you need help devising an asset protection strategy, turn to C. Roland Krueger Attorney and Counselor at Law. Based in Lexington, NC, this debt relief lawyer has been helping clients regain their financial footing for nearly 40 years. His areas of expertise include bankruptcy, foreclosure defense, and Social Security disability. To request an initial consultation, visit the firm online or call (336) 248-8464.