• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Potter Law Firm

North Carolina and Kentucky Estate Planning Attorneys

phone iconNC (704) 944-3245
KY (606) 324-5516
Attend A Free Seminar - KY Attend A Free Webinar - NC/SC THIS IS AN ADVERTISEMENT

  • Home
  • About Us
    • About Our Firm
    • Attorney and Staff Profiles
  • Practice Areas
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • Pet Planning
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Nursing Home Planning
    • Veterans Benefits
  • Communities We Serve
    • Kentucky
      • Boyd County
        • Ashland
        • Florence
      • Kenton County
        • Covington
        • Fort Mitchell
        • Independence
    • North Carolina
      • Mecklenburg County
        • Charlotte
        • Davidson
        • Huntersville
  • Resources
    • Definitions
    • DocuBank
    • Elder Law
      • Elder Law Links
      • Elder Law Reports
      • Local Elder Law Resources
        • Ashland Elder Resources
        • Covington Senior Resources
        • Huntersville Elder Law Resources
        • Independence Senior Resources
    • Elder Law Reports
    • Emergency Legal Documents
    • Free Estate Planning Seminars
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • IRA & Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Pet Planning
      • Trust Administration & Probate
    • Is Your Estate Plan Outdated?
    • Kentucky Probate Resources
      • Ashland, Kentucky Probate Resources
    • Newsletters
    • North Carolina Probate Resources
      • Huntersville, NC Probate Resources
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Elder Law Reports
      • Estate Planning for Niches
      • Trust Administration
  • Contact Us
  • BLOG
Home » Estate Planning » Asset Protection Planning » Asset Protection Planning Will Provide Peace of Mind

Asset Protection Planning Will Provide Peace of Mind

June 29, 2021 by John Potter

6.2 asset protectionIt is a terrible feeling to find yourself in a difficult situation that you could have prevented if you had taken action in advance. This definitely applies to asset protection planning because a lot of people put it on the back burner until it is too late.

Limited Liability Company

If you are a small business owner, you should definitely use an asset protection structure to separate your personal interests from your business interests. A limited liability company or (LLC) can be the ideal choice for a wide range of business people.

When you establish an LLC, generally speaking, your personal property would be protected if creditors or other litigants initiate an action against the business. There is an exception if you are personally responsible for causing an injury while you are conducting business.

The asset protection works in both directions. If you are personally sued, the business assets would be protected under most circumstances.

A limited liability company will only protect assets from future claims. You cannot use an LLC to protect assets after you know that a legal action has been initiated. This would be an illegal fraudulent conveyance.

Family Limited Partnership

Another asset protection structure used by some business owners, professionals, and investors is the family limited partnership (FLP). As the name indicates, the people in the partnership would be members of the same family.

If you are the individual establishing the family limited partnership, you would be the general partner, and family members you bring into the fold would be limited partners.

An FLP is not a democracy when it comes to decision-making. The general partner has complete authority to make all decisions on behalf of the partnership.

Property that is held by the partnership would be protected if any partner is personally sued. Conversely, the personal interests of the respective partners would be protected if an action is initiated against the partnership.

It is possible to create more than one family limited partnership to limit exposure. For example, if you own two apartment buildings, you can convey each of them into a separate family limited partnership.

If someone files a lawsuit because they were injured in one of the buildings, the other one would be protected, and the personal property of partners would also be out of harm’s way.

Other Types of Asset Protection

Umbrella insurance is another way to protect assets. This can be purchased by a business owner or an individual, and it would provide a benefit if costs exceed the limits of the standard insurance policy.

If you are bringing significant resources into a marriage, you may have concerns. Under these circumstances, you can enter into a prenuptial agreement to establish terms that protect your interests.

With regard to protecting the inheritances that you want to leave to children from a previous marriage, you could use a legal device called a qualified terminable interest property (QTIP) trust.

Your surviving spouse would be able to receive distributions of the trust’s earnings for the rest of his or her life. They could also use property that is owned by the trust, but they would not be able to change the terms.

After the spouse’s passing, your children would inherit the assets that remain in the trust.

Nursing home costs could potentially consume your all or most of legacy because Medicare does not pay for long-term care. Medicaid will pick up the tab, but you can’t qualify if you have significant assets in your name.

You could convey assets into an irrevocable Medicaid trust to establish a financial profile that will lead to eligibility.

Schedule a Consultation Today!

We are here to help if you are ready to work with a Charlotte, North Carolina or Huntersville, North Carolina estate planning lawyer to put a plan in place. You can schedule a consultation appointment if you call us at 704-944-3245.

The number for our location in Ashland, Kentucky is 606-324-5516, and the number for our Florence, Kentucky office is 869-372-6655.  You can also use our contact form if you would rather send us a message.

 

  • Author
  • Recent Posts
John Potter
Latest posts by John Potter (see all)
  • What You Need to Know about the Medicaid Look-Back Rule - January 3, 2023
  • How to Pass Down Your Legacy in Your Estate Plan - October 3, 2022
  • Practical Steps to Take after Receiving a Terminal Diagnosis - September 30, 2022

Filed Under: Asset Protection Planning Tagged With: Asset Protection, FLP, LLC

Other Articles You May Find Useful

The Potter Law Firm
Can a Trust Provide Asset Protection in Charlotte NC?
asset protection
What Type of Trust Protects Assets?
irrevocable trusts
What are the Advantages of an Irrevocable Trust?
Florence asset protection planning
Florence Asset Protection Planning
Ashland Medicaid attorneys
If You Don’t Understand the Medicaid Look-Back Rule You May Be in Trouble
Florence asset protection attorneys
Understanding How Your Asset Protection Strategies Work

Free Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
Texting Permission

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Subscribe to Our Blog

  • This field is for validation purposes and should be left unchanged.

Testimonials

default image

Overall The Potter Firm was very professional. They took what could of been a very complicated process and were able to break it down so it was a lot easier to understand. We are confident we now have made the right decisions in our estate planning. Good firm to work with.

DKS & KMS Client Review August 28, 2020

default image

John Potter has been a real pleasure to work with. He is very knowledgeable and explains things in a very simplistic manner so the average person can understand how/why the laws are written. He is very attentive and asks questions in such a way that not only helps him understand your goals, but also helps you think about what type of goals and expectations you should be considering. Exemplary client service.

David J. Client Review August 28, 2020

default image

My husband and I selected Ms. Potter to assist with our small business. She responsive and attentive every time I have a question or need assistance, and is extremely knowledgeable and able to answer any legal question I have had. I know I can count on Ms. Potter for all of my business legal needs and I would highly recommend her to anyone needing legal assistance with such.

Jillian Client Review August 28, 2020

<< Prev
Next >>

Where We Are

Ashland

ASHLAND
1620 Carter Avenue
Ashland, KY 41101-7631
Phone: (606) 324-5516
Fax: (606) 324-4766

Charlotte

CHARLOTTE
15720 Brixham Hill Avenue
Suite 300,
Charlotte, NC 28277
Phone: (704) 944-3245

Huntersville

HUNTERSVILLE
11330 Vanstory Drive
Huntersville, NC 28078
Phone: (704) 944-3245

Northern Kentucky

NORTHERN KENTUCKY
7310 Turfway Road
Suite 550,
Florence, KY 41042
Phone: (859) 372-6655

Office Hours

Monday8:30 AM - 4:30 PM
Tuesday8:30 AM - 4:30 PM
Wednesday8:30 AM - 4:30 PM
Thursday8:30 AM - 4:30 PM
Friday8:30 AM - 3:00 PM

Map/Location

potter_sidbr_map
potter law logo
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Terms of Service | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc. THIS IS AN ADVERTISEMENT