HISTORICAL FACTS: in 2006-2009 when the stock market and real estate crash/recession hit, litigation in California spiked by almost 50% (see Chart). Today that represents about 3% of the state’s population..

THE REPLAY TRIGGERED BY COVID-19: a decade later we’re back to the same economic condition but this time its potentially much worse. The virus has not only affected the investment markets, especially the stock market, but could impact almost every facet of our economy, including employment, inflation, trade, health care costs, etc.

CLIENTS CONFIRMING LAWSUITS: in the last few weeks, we have had multiple calls from clients with newly known litigation issues now presenting themselves, asking to ensure their private retirement and wealth preservation plans are fully intact and properly funded.

THIS IS JUST THE START: based on our experience with market fluctuations over nearly 30 years I expect a dramatic increase in debtor litigation and asset seizure claims. Our clients are proactive and have done their pre-planning. But those who haven’t will be the ones who will lose their hard-earned wealth.

DO YOUR RISK PLANNING BEFORE YOU HAVE ISSUES – OR IT CAN BE TOO LATE: California has the Uniform Voidable Transactions Act (UVTA) that regulates fraudulent transfers. In summary, anytime you try do asset protection planning once you know of a legal issue/threat then you fall into fraudulent conveyance rules and assets can be clawed back for distribution to the claims and seizure of creditors.

THOSE WHO HAVE DONE THEIR RISK PLANNING CAN SURVIVE & EVEN THRIVE: However, if you do your planning in advance for valid retirement, estate or tax planning reasons, assets can be exempt from the claims of creditors under California or Federal Exemption Laws.

CONCLUSION: DON’T PROCRASTINATE AND FORFEIT YOUR LEGAL EXEMPTION (PROTECTION) RIGHTS! DO YOUR RISK PLANNING BEFORE YOU HAVE ISSUES – OR IT WILL BE TOO LATE.

WHAT TO DO NEXT: contact us for more information or use our free Exemption Diagnostic Tool. However, if you already have a legal issue, you need to contact an attorney first and secure your client privilege (privacy). We can discuss with them whether a Plan is appropriate or too late to implement.