We would like to thank our neighbors in Huntington Beach for visiting our website. If you are looking for a licensed estate planning attorney in the Orange County area, you have found a reliable local resource. This amazing seaside city in Orange County was named for the American businessman Henry E. Huntington. Huntington was an American railroad magnate who settled in Los Angeles. He was the original owner of the Pacific Electric Railway.
Huntington Beach has a population of more than 189,000 which makes it the most populated beach city in Orange County. Bordered by the Pacific Ocean on the southwest, Huntington Beach is known for its nearly 10 miles of sandy beaches and excellent surfing locations. The beach culture in this city is thriving, as the beach is known for enhanced ocean waves as a result of the open ocean swells around Santa Catalina Island. Huntington Beach has earned the nickname “Surf City,” and rightly so.
The typical California lifestyle
It is said that the lifestyle in Huntington Beach is a perfect example of the “California lifestyle,” of freedom and fun. Many songs have been sung about the city, including “Surf City” by Jan and Dean, and mentioned in the Beach Boys song “Surfin’ Safari” and “Surfer Joe” by the Surfaris. It is said that Huntington Beach is the epitome of the California surf culture. The city has some of the State’s cleanest, widest, and safest beaches.
“Best City to Live in Orange County”
The Orange County Register named Huntington Beach the “Best City to Live in Orange County,” in part because of the charming community, moderate weather and diverse economy. There is a variety of housing options and an excellent school system.
Serving our neighbors in Huntington Beach
As we serve our neighbors in Huntington Beach, we want to share our advice on asset protection. A common question that client ask is: when should I start my asset protection planning? The answer is now. The general rule is – you need to start planning before your creditor’s start making claims against you. While there are several ways to go about protecting your assets, many are not effective if your creditors have already made a claim against you, or some other financial liability has arisen. Why? Because in many cases, if you transfer your assets after a claim has been made, the transfer may be considered fraudulent. In other words, the courts may say that you transferred your assets in order to avoid paying your debt.
For asset protection to work you need to avoid fraudulent transfers
The most common type of fraudulent transfer is when a debtor sells or gives away most of their assets to a relative in order to keep that property out of their creditors’ reach. In order to avoid this situation, you need to plan ahead and make proper transfers for assets before it’s too late. But, how do you know who is a potential creditor? This can be very difficult to determine. So, discuss your financial situation with your asset protection lawyer to be sure you consider the possibilities.
Asset protection tips for business owners
It is equally important for business owners to protect their assets, as it is for an individual. In fact, it may be more important, as business owners typically have more sources of debt or potential liability. Here are some examples of ways that a business owner can avoid potential liability:
- avoid high-risk investments
- exercise extraordinary care when hiring employees
- refrain from loaning cars, boats and other dangerous equipment to someone else
- avoid joint ownership in such dangerous equipment
- include indemnification language in all contracts, where appropriate
Why do I really need an asset protection plan?
Asset protection basically involves analyzing your assets and arranging them so that you can provide the most protection against loss possible. If you engage in asset protection properly, with the help of an asset protection lawyer, the process is completely legal. In fact, you can effectively protect all of your assets from the unexpected risk of loss, without any type of fraud or tax evasion. Without protection, though, you could leave much less behind for your family than you intended, simply because the creditors must be paid first.
Asset protection planning is not illegal
A common misconception that many clients have is that asset protection planning involves under-the-table transactions meant to evade and deceive. That is not the case. We all have the option of structuring our assets in a manner that is financially beneficial to us, as long as it is done within the limits of the law. In reality, the only time fraud becomes an issue is when the obvious purpose of the asset protection plan is to hinder, delay or defraud creditors from collecting valid debts. This can be avoided by creating your asset protection plan before the creditors’ claims arise.
If you have questions regarding asset protection planning, please contact the Schomer Law Group either online or by calling us in Los Angeles at (310) 337-7696, and in Orange County at (562) 346-3209.