An Ohio Asset Protection Overview can greatly vary. Ohio debtors may only choose from the state bankruptcy exemptions.
Property held in tenancy by the entirety is exempt from the debts of one spouse. Ohio is a typical Midwestern state insofar as real property is given only nominal protection from creditors, and life insurance can be protected to some degree if structured properly.
However you have to be careful in Ohio. Ohio has a fraudulent protection act in place. Ohio Fraudulent Transfers Act.
Terry Wooten v. Robert F. Kreischer et al., 2005 Ohio 4078 (Ohio App. 08/03/2005) Summarized with the Ohio Revised Code 1336.
"The trial court, in the case sub judice, specifically cited R.C. 1336.01(G)(1)(a) in finding that the transfer to Ponsart was to an insider. However, there is no evidence in the record that Ponsart was appellant's relative. Furthermore, at the bench trial, Ponsart testified that it was never his intention to form a partnership n5 for profit with appellant with respect to the land and, during his trial deposition, appellant testified that the two never bought the land intending to make a profit. As noted by appellant, there was no evidence to the contrary. While the trial court, in its decision, stated that at the criminal restitution hearing on September 3, 2002 appellant identified Ponsart as his "partner", upon our review of the transcript of such hearing, They found no such reference."
There is also an Ohio Trust Act in place. This Trust Act is all handled through at the state level.
There is a homestead exemption in place The Homestead exemption amount in Ohio is $5000. [Ohio Revised Code 2329.66(a)(1)(b)]
Ohio Life insurance proceeds are exempt if there is a clause that prohibits the proceeds from being used to pay beneficiary's creditor's. [Ohio Revised Code 3911.14] Life insurance proceeds that are designated to a spouse are exempt. [Ohio Revised Code 3911.12]
As you can see Asset Protection in Ohio has to be handled carefully. A wrong move could put you in real legal trouble. It would be most advisable to seek out a good Attorney.
You can never be to careful when your working with the Ohio Revised code. Protecting yourself with Asset Protection is a good idea. But it's always good to know the law's in your state before hand.
Sadly the first question usually asked when a lawsuit is being considered is the extent of the other parties net worth. And in Canada as long been the practice in the States, attorneys are now permitted to be take cases on an agreed percentage of the awards if they win. Asset protection steps are definitely necessary in these times of frivolous litigation.
Problem #1- Predatory Lawsuits: This is the main reason people need asset protection strategies, predatory lawsuits has been alleged to be the main reason judgment settlements are much higher and lawsuits more frequent here than in any other country. It is also the reason a lot of frivolous lawsuits are started knowing full well the other party would prefer to settle out of court rather than go through a lengthy and disruptive legal proceedings. To counter this one needs to do asset protection planning and implement asset protection strategies.
Problem #2- Probate: Another reason for asset protection information is that it is difficult to transfer assets to your heirs without excessive loss due to probate and taxation. Not only is probate a long process ? it encourages family infighting - it can severely erode your families assets. When Elvis Presley died all that was left of his 10 million dollar estate was 2 million dollars. Definitely a case where no steps was taken to implement asset protection strategies
The Solution Asset Protection and Wealth Management: Why leave yourself, your family and or your business at such a risk as to put no asset protection strategies in place. Consider the option of asset protection planning and its many advantages not only in regard to wealth protection but also in regard to freedom of movement, privacy and wealth accumulation without excessive taxation.
If you have a family business and wealth that you have built through your lifetime, you can easily avoid wealth lost through due to lack of proper estate strategies. You can ensure bulletproof asset protection. Your best asset protection is to implement asset protection planning by putting various asset protection strategies in place by getting good estate planning information.
Both Shawn Burgy & Les Raketti are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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