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.

1. Create a Family Limited Partnership (FLP)

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​.

2. Use an Asset Protection Trust

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​​.

3. Title Property Strategically

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​.

4. Use Accounts-Receivable Financing

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.

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