Life can be full of unexpected challenges. No one ever thinks they will face a lawsuit or deal with aggressive creditors, but it happens quite often. For families who have worked hard to build their wealth, protecting those assets is incredibly important. Protecting family wealth requires careful and strategic planning. If you are wondering how to keep your family’s financial future safe, here are some advanced strategies that can help.
A Family Limited Partnership, or FLP, is a smart way to protect family assets while keeping them within the family. An FLP involves transferring assets like property or investments into a partnership. Family members become limited partners, but control stays with the general partner, who is often a parent or family leader.
An Asset Protection Trust (APT) is one of the strongest ways to keep wealth safe. An APT takes assets out of your name and puts them into a trust controlled by a trustee. Because the trust cannot be changed once it is set up, creditors cannot access those assets. Offshore APTs offer even more protection since they are beyond the reach of U.S. courts.
Sometimes, how you own property can make all the difference. Married couples, for example, can title property as “Tenants by the Entirety.” This form of ownership protects property from creditors if only one spouse is in debt. Creditors cannot force the sale of the property to collect on a debt owed by just one partner. This simple change can offer a strong layer of protection for your family’s most valuable assets.
For business owners, accounts-receivable financing can be an effective tool for asset protection. This strategy involves borrowing against the money a business is owed and moving that cash into safer investments, like annuities or retirement accounts. By doing this, the business appears less valuable to creditors, and personal or family wealth stays secure.
O’Brien Law Firm, LLC, has the experience to create a personalized plan that keeps your financial future safe. Contact us today to start protecting what you have worked so hard to achieve.
Starting a business always comes with risks. For serial entrepreneurs in Mississippi, taking chances on multiple ventures can sometimes lead to financial hurdles down the road. When debts pile up and businesses struggle, filing for bankruptcy may feel like the only way out. However, bankruptcy is not always straightforward, especially for entrepreneurs who have started more than one business.
Bankruptcy is meant to help people and businesses manage debt, but it affects serial entrepreneurs differently. For small business owners, especially those who have started multiple ventures, bankruptcy often focuses more on personal financial issues than on saving a business.
Chapter 11 bankruptcy is one option for struggling businesses, allowing them to reorganize their debts. However, it can also trap entrepreneurs in a failing business longer than necessary. This situation is known as the “lock-in effect,” where staying with an existing business feels easier than starting a new one.
In Mississippi, entrepreneurs have several bankruptcy options to consider:
Filing for bankruptcy is stressful and complicated, but serial entrepreneurs face even more challenges.
O’Brien Law Firm, LLC, knows how challenging this process can be for serial entrepreneurs in Mississippi. Contact our team today to learn how we can help you move forward.