Asset Protection

Incorporation and trusts are not limited to business formation and estate planning. These options can also protect hard-earned assets from potential lawsuits and creditors so they can be used to benefit your family instead. Many even offer tax benefits that can help maintain, if not increase, value.

John Kenney & Associates offers investors and anyone else with substantial wealth the expertise to create legal vehicles that can preserve fortunes. Taken as a precautionary step, we can help you keep your assets where they offer the most advantages—with you and your family.

Family Limited Partnership (FLP)

A family limited partnership is often a wise choice to provide asset protection for your investments and assets.  One of the most common techniques to protecting assets, the FLP utilizes what is called “charging order protection” to minimize or eliminate creditor threats.

Limited Liability Company (LLC)

This business form has the protection of a corporation is a cost-saving and liability-protection vehicle that can shield your personal assets from liability. Family interests with no control powers can also be transferred to your loved ones much like in a family limited partnership.  LLC’s, much like their cousins the FLP, also utilize “charging order protection” to minimize or eliminate creditor threats.

Domestic Asset Protection Trust

This trust can allow your beneficiaries to receive your property and keep your assets safe from creditors. It can also protect certain assets acquired before marriage in the event of a divorce. Domestic Asset Protection Trusts are often known as Alaska Trusts, Delaware Trusts, or Nevada Trusts, particularly because those are the states that have been leaders in crafting anti-creditor legislation, designed to protect individuals and families.  These are more complicated to create and setup properly.  If you are concerned with protecting your wealth from creditors and disputes contact us.  You can read more about it here:

Foreign Asset Protection Trust

These trusts are much like the domestic counterpart except they use the laws of foreign jurisdictions, such as the Cook Islands, which are known for strong creditor and asset protection laws.  Just like the Domestic Asset Protection trust, there are many requirements and some limitations to this vehicle, so contact us to discuss it further.  You can read more about it here:

Fraudulent Conveyance

Transferring property to another to prevent attachment by creditors is known as a fraudulent conveyance. Whether you are being accused of this move or you suspect one of your debtors is hiding assets, we can help defend you or locate attachable assets in debt collection situations.

Charging Order Protection

Charging orders allow a judgment-creditor of an FLP or LLC owner to attach distributions if and when they are made. Charging order protection is often at the heart of an asset protection plan that involves domestic FLP’s or LLC’s since the person against whom a judgment is obtained cannot usually force, nor can the creditor force a distribution or liquidation of the debtor’s interest in the FLP or LLC.

Qualified Personal Residence Trust

Do you have a home free and clear that you wish to transfer to a spouse or other family member upon your death? The personal residence trust allows you to do that at a discounted rate for estate tax. Once you move your residence into the trust, the appreciate value is also excluded from the overall estate, which lowers its worth to protect it from estate taxes.  Furthermore, since it is what is called a “split interest trust” the courts are less likely to take it away in a lawsuit or creditor threat.

If you wish to take precautions and protect your investments in the long run, we can help you find the right vehicle. Contact John Kenney & Associates, PLLC at (360) 850-1049.

John Kenney & Associates, PLLC proudly seves the following locations: Poulsbo, Kingston, Bainbridge Island, Silverdale, Bremerton, Port Orchard, Seattle, Tacoma, Kitsap County, King County, Jefferson County, Clallam County, Mason County, Pierce County, Thurston County, Snohomish County and the entire Puget Sound region.