Asset Protection

An important concern in this age of often frivolous litigation is the protection of assets. Hawai’i is one of several states that recognizes a special type of property ownership for a married couple called “tenants-by-the-entirety.” Such ownership is often used for real property and serves to PROTECT the whole of the property from the creditors of either individual spouse. (It does not, however, protect against a joint creditor such as a mortgage company, where both spouses may be guarantors.)

In the past this protection was lost upon any transfer that broke the tenancy, such as a transfer to trust. Under a recent Hawai’i law, however, married couples may now maintain the creditor protection afforded them as tenants-by-the-entirety even after the property is transferred into trust.  If property is already in trust, however, it must be deeded out and then deeded back into trust to benefit from the new law.

Very few assets are actually exempt from the claims of potential creditors. However, the attorneys at Hastings & Laun help clients who reside in the state of Hawai’i, including those on the Big Island, Maui and Oahu, to minimize their liability exposure by utilizing sophisticated planning techniques such as:

Asset Protection Techniques

Techniques used to limit assets’ exposure to potential creditors include:

• Using limited partnerships to own assets which are not protected
• Having limited liability companies own single purpose assets
• Utilizing a combination of grantor trusts, limited partnerships, and limited liability companies to protect assets
• Creating a defensive wall to circumference the entire estate from potential claims and frivolous lawsuits
• Creating trusts in jurisdictions with favorable laws
• Utilizing insurance products to protect assets
• Marital property planning

Our attorneys can work with you in creating an asset protection plan that best meets your needs