fbpx
Facebook Twitter LinkedIn YouTube Instagram Website Phone
Facebook Twitter LinkedIn YouTube Instagram Website Phone

Law Office of Inna Fershteyn and Associates, P.C.

Estate Planning & Elder Law Attorney

Law Office of Inna Fershteyn and Associates, P.C.

Primary menu

  • Home
  • Practices
    • Estate Planning and Administration for 2025
    • Wills & Trusts
      • Trust and Estates Roadmap
    • Wills
    • Dying Without A Will In New York | What Happens When There Is No Will
    • ESTATE Planning
    • Asset Protection
      • Medicaid Asset Protection Trust Lawyer NY
      • LLC vs S-Corp. Comparison
      • Special Needs Trusts
      • How to Legally Shield & Hide Assets from Creditors in New York
    • Probate and Administration
      • Power of Attorney New York
    • Guardianship
    • Elder Law
    • Medicaid Planning
      • New York Medicaid Changes 2024 | Urgent Medicaid News
    • Medicaid Fraud
      • HRA FRAUD Inquiry RoadMap
      • HRA Implements New Policies on Charging People With Fraud
    • Fair Hearings
      • Medicaid Fair Hearings – MLTC
  • Will Package
  • Articles
  • About
    • Internship Opportunities
  • Reviews
  • Resources
    • The Heirs Property Protection and Deed Theft Prevention Act
    • 2024 Corporate Transparency Act
    • Preparing for Your Consult
    • COVID-19 Resources
      • Why TRUSTS are better than Wills after Covid-19 Estate planning?
      • Who pays for Nursing Home if I stay longer than 3 months?
      • Why Drafting a Trust is so Important During the Covid-19 Pandemic
      • Probate filing with Surrogate’s court after Covid-19: New Rules and Procedures
      • Unemployment Insurance Questions & Answers During COVID-19 Time in NY
      • Virtual Estate Planning NYC
      • COVID-19 Estate Planning Guide
      • COVID-19 Why A Health Care Proxy Is Critical Now
      • COVID-19 Emergency Estate Planning Tips
      • COVID-19 Coronavirus 5 Must Have Estate Documents
      • COVID-19 Caring For Elderly Parents
    • FAQS
      • Estate Planning FAQS
      • Medicaid Planning FAQS
    • Videos
    • Infographics
    • Phone Numbers Every Senior Should Have
    • Glossary of Legal Terms
    • Read Our eBooks
    • Inna Fershteyn Radio Appearances
    • Yelp Reviews
  • CONTACT
Search

Noah Didn’t Wait Until the Flood – The Importance of Preemptive Asset Protection

Posted onMarch 16, 2018July 2, 2024AuthorInna FershteynComments Off on Noah Didn’t Wait Until the Flood – The Importance of Preemptive Asset Protection

Noah Didn’t Wait Until the Flood – Protect Your Assets Before It’s Too Late

One of the earliest examples of asset protection, or the assurance that one’s assets are protected from creditor claims in the event that they are sued, is found in one of the most worshipped documents in the world: the Bible. While people are generally familiar with the scenario of Noah’s Ark, its relevance to the need for asset protection is frequently overlooked.

preemptive-estate-planning

As the story tells, before a massive flood hit the earth, Noah spent almost a century building an enormous Ark, or boat, to safely carry his family, as well as two of every species of animal, until it was safe to set foot on land again. Without Noah’s foresight of the flood, he would have had no incentive to build the boat, and would not have been able to rescue as many animals as he did nor save himself. By acting as he did, he protected the most valuable asset in his care – humanity’s future.

Regarding modern asset protection, while most people generally don’t have true foresight regarding tragedies that may occur in the future, with the help of an asset protection attorney, there are preemptive measures they could take to ensure the protection of their assets from creditors’ claims, if ever the time should come that they are found liable. In short, although people no longer have to worry about massive floods on a global scale, they do have to worry about getting sued.

Picture this:

A building is owned by a Limited Liability Company (LLC), and the LLC doesn’t have liability insurance. One day someone falls down a staircase that has needed renovation for a few months. Within a few days, the injured individual sues. Since the company was never insured, the LLC Manager is sued personally.

The LLC Wasn’t Insured, Bad News for the Manager

One of the perks of owning an LLC is the possibility that if the company is on the receiving end of aggressive litigious action, employees of the company cannot get sued personally. Instead, the company is sued as a single entity, making it much harder for the company to be found liable. In this case, since the LLC manager neglected to acquire liability insurance, he is at risk of losing many of his assets to creditors (the fallen pedestrian who perhaps has a broken leg).

Think Ahead – How The Manager Could Have Saved His Assets

Aside from purchasing liability insurance, the LLC manager’s problem could have been avoided with proper estate planning. Prior to the incident, or even when the LLC was first opened, the manager could have opened an irrevocable trust to store his assets. An irrevocable trust is a safe way to remove certain assets from your personal ownership and gift them to a beneficiary without granting any possible creditors access to those assets. An irrevocable trust, by definition, cannot be amended, so once assets are moved into one, creditors looking to hold a judgement against the manager and gain the assets will do so to no avail. In addition, the assets are also protected from the beneficiary’s liabilities as long as they do not have a defined interest in the assets contained in the trust, via a spendthrift provision, which limits the beneficiary’s access to the assets while completely revoking that of any creditor. Had the manager put his assets in an irrevocable trust prior to the incident, they would have no longer been under his ownership, and creditors would be out of luck when trying to access them.

Besides storing your assets in an irrevocable trust, there are ways to protect your estate from creditors.

Here’s another scenario:

A young doctor is driving a car and gets into a fatal car accident. Though his car is insured, he soon finds out that there is not enough coverage on the insurance to compensate for the tragic accident. Later, he finds out that the family of the deceased person is suing.

Insurance Wasn’t Enough – The Young Doctor Could Lose His Assets

In this situation, since the doctor’s insurance does not fully cover the charges over which the family is suing, he is at risk of losing any assets he may have incurred over his hard-worked career.

A Retirement Account Could Save Your Assets Before You Retire

Besides driving carefully, prior to the incident the doctor should have opened an Individual Retirement Account (IRA) or Roth IRA. Over the last several decades, IRA’s have become one of Americans’ most valuable assets, and for good reason; a traditional IRA allows for contributions to be deducted from federal or state taxes and a Roth IRA does not tax portfolio earnings. Aside from potential growth in the principal amount contributed to an IRA through a mutual fund or other type of investment, while federal law does not provide an exemption, the law in most states including New York, New Jersey, New Hampshire, Florida, Michigan, Indiana and other states calls for the exemption of IRA’s from creditors. In the case of the young doctor, had he stored his assets in a retirement account, as long as he was in a state that permitted this exemption, the family of the deceased person would not have been able to access them through litigation.

The reality is, asset protection is much like insurance. You buy car insurance to protect your car in case you get in an accident. You purchase health insurance so you can receive healthcare for free or for an affordable cost should you ever need it. You buy flood insurance in case your home is ever adversely affected by a massive flood. What all of these examples have in common is that insurance is acquired before disaster strikes (Remember that Noah built the ark before the flood hit). Asset protection, similarly, is something that should be acquired before the situation which requires it arises. As it relates to the scenarios outlined above, with the help of a licensed asset protection attorney, you can make sure that your assets are kept safe from any legal action of which you are on the receiving end.

Sharing article

  • Facebook
  • LinkedIn
  • Email

CategoriesAsset ProtectionTagsasset protection, debt, estate planning, How can I protect my assets if I get sued?, How can I protect myself from getting sued?, individual retirement account, IRA, irrevocable trust, Roth IRA, Steps to securing my assets from creditors

Post navigation

← Previous Previous post: Woodbridge, Bayou, and Stratton- Financial Schemes by “Reputable” Institutions
Next → Next post: Digital Assets Estate Planning – Alternatives to Perpetual Access

Contact Us

    Immediate response in 1 hr.
    Flat Fee Retainers Are Available.
    Call (718) 333-2394. 


    Super Lawyers 2023

    BLOG Categories

    Subscribe


     


    Get legal help today from our Principal attorney

    (718) 333-2394

    Address:
    1517 Voorhies Ave 4th Floor,
    Brooklyn, NY 11235
    Open 24 Hours

    Legal Connections

    Advanced-Legal
    Medicaid-Fraud
    Estate Lawyer
    Estate Blog

    Newsletter sign up

    Select list(s) to subscribe to

    Brooklyn Office

    1517 Voorhies Avenue, 4th floor
    Brooklyn, NY 11235
    Phone: (718) 333-2394

    BROOKLYN MAP

    Manhattan Office

    310 East 2nd Street, #9A
    New York, NY 10009
    Phone: (718) 333-2395

    MANHATTAN MAP

    Long Island Office

    8 Delacey Avenue
    East Quogue NY 11942
    Phone: (718) 333-2395

    LONG ISLAND MAP
    Wills and Trusts | Estate Planning | Asset Protection
    Medicaid Planning | Elder Law | Guardianship
    Medicaid Fraud | NY Will Probate | Fair Hearings
    Copyright © 2025 Law Office of Inna Fershteyn and Associates, P.C.. All Rights Reserved | Attorney Advertising: This website is designed for general information only. The information presented on brooklyntrustandwill.com should not be construed to be formal legal advice or the creation of an attorney/client relationship.
    Law Office of Inna Fershteyn and Associates, P.C - 1517 Voorhies Ave 4th Floor, Brooklyn, NY 11235 | Phone: (718) 333-2394 | Get Directions | Privacy Policy

    FOR CONSULTATION (718) 333-2394

    CALL (718) 333-2394