Protecting Your Biggest Asset - Your Property

When dealing with asset protection, a huge concern is property ownership.  At times, a trade-off is necessary between the control of the property, the tax benefits desired and protection wanted.

In a common scenario, a future husband and wife may own a property as joint tenants in common but wish to maximize their creditor protection and own it as tenants in the entirety.  This transfer may be useful in that they may choose to change ownership to tenants by entirety when they get married.  This change will offer the following benefits:

• give them the ability to have an undivided interest in the property,
• creditors will have limited ability to force distribution,
• the property will automatically transfer to the survivor upon death of one,
• a filing of bankruptcy by one may keep the property secure from creditors by the other.

However, the conveyance may cause a spouse the loss to individually transfer ownership, the property would lose its separate property status, and the entire property would become subject to the surviving spouse's creditors and the whims of the surviving spouse.

While this is just one issue and there are many ways to convey ownership of property, whether real or personal or utilizing corporate ownership or beneficiary interests in trust, there are many issues that should be reviewed and possibly addressed prior to making the transfer.  This runs true even for future business partners as well as marriage and other new ventures.

It is always highly recommended that one should consult with professionals who are experienced and skilled to establish a plan that addresses one's needs, desires and goals.