Many family businesses, especially startups, may not see the need for asset protection and treat it as a low priority. As their business grows, they may focus on daily operations, overlooking asset protection. Unfortunately, it is often only after a lawsuit is filed or a change in family structure that asset protection becomes a top concern —which by then may be too late.
The state offers substantial protection for certain assets, such as homesteads, retirement accounts, and insurance policies. However, non-exempt assets can still be protected through limited liability companies and family limited partnerships.
Contact a savvy San Antonio family business asset protection lawyer at Begum Peláez-Prada PLLC for strategies to protect your legacy. A family business attorney understands state law and could design a customized strategy for your business.
While the state is known for its pro-business environment, many asset protection strategies must comply with legal guidelines. A well-versed business asset protection attorney is essential for ensuring these strategies are utilized correctly. Some strategies include:
Limited liability companies, limited partnerships, and family limited partnerships can centralize and protect assets. Since business and personal assets are separate, only the business’s assets are vulnerable to liabilities in the event of a lawsuit.
State law exempts primary residences from creditors and lawsuits, meaning you cannot be forced to sell your home to cover debts or liabilities. A knowledgeable attorney could explain the specifics of the Homestead Exemption to ensure your home remains protected.
Trusts create a legal distinction between the trustee and the beneficiaries. When business assets are placed in a trust, they are protected against lawsuits, claims, and creditors. Irrevocable trusts are permanent and safeguard assets for future generations, while living trusts protect asset ownership against creditors or other legal entities. The best type of trust for you will depend on your business and family. Families in San Antonio considering a trust for their company’s financial security should consult an asset protection attorney.
Adequate insurance coverage can mitigate and protect against threats to a business’s assets, including liability, malpractice, and umbrella policies. Sasha Begum, our managing partner with nearly 20 years of experience, could evaluate your policy and ensure sufficient coverage.
Qualified retirement accounts, such as 401(k)s and IRAs, may have certain protections against creditors. Working with a seasoned lawyer could ensure your retirement accounts are protected.
Every family business should assess various risk management strategies, such as exempting assets from creditors, transferring risk to other financial instruments, or limiting liability with business structuring. Dedicated legal counsel could help you select the best strategy for your circumstances.
As a business owner, you have worked hard to achieve financial success. To preserve your wealth for future generations, you need the assistance of a credible San Antonio asset security lawyer who understands the importance of seeing the family behind the business and looking at the big picture.
Asset protection aims to minimize exposure to potential threats that could impact your financial well-being, such as lawsuits, bankruptcy, and tax liabilities. These strategies can also safeguard business assets during domestic disruptions. By planning today, you are securing tomorrow’s success.
A steadfast attorney could help you navigate complex legal and financial laws to protect your assets and develop a strategy that addresses your specific needs and concerns. Preserve your wealth by collaborating with a San Antonio family business asset protection lawyer.
Begum Peláez-Prada PLLC assists businesses with achieving their financial objectives, from startups to mergers and succession planning. They understand the importance of working closely with families to craft an effective strategy. If your business assets are not fully protected, reach out to our team today to discuss next steps.
