Am I able to hire an estate planning attorney for asset protection after I have been sued?

Quick Answer

Technically yes, practically it is a poor position to be in. Once a lawsuit is filed, moving assets invites close scrutiny under fraudulent transfer law, and a court can reverse the transfer entirely. Asset protection is a planning tool, not a rescue tool, and it works in proportion to how early you use it.

The honest answer

You can hire an attorney at any point, and a good one will tell you that your best options closed when the claim arose.

Guess what a court sees when significant assets move shortly after a lawsuit is filed? Exactly what it looks like.

Why timing changes the legal character

Before any claim, arranging your affairs is planning.

After a claim, transferring assets can be a fraudulent conveyance, and Georgia courts can set it aside, letting the plaintiff reach those assets to satisfy a judgment as though the transfer never happened.

Courts look at the badges: a transfer to a family member, receiving little in return, moving most of what you own, doing it right after the claim arose, keeping control afterward, concealing it, being insolvent once it is done.

It can leave you worse off

A reversed transfer does not put you back where you started.

You may face additional damages, legal costs on both sides, and a court that now views your conduct unfavorably in a case you were already defending.

You may also have handed the plaintiff a second front to litigate, which lengthens and worsens the original dispute.

What can still legitimately be done

Not nothing, and less than you would like.

Understand what is already exempt. Certain assets have protections under Georgia and federal law regardless of what you do now. Knowing what is genuinely at risk changes how you evaluate a settlement.

Review insurance. The most useful protection in most lawsuits is a policy, and families sometimes discover coverage they had forgotten.

Defend the claim properly. Sometimes the best asset protection is winning, or settling sensibly and early.

Plan for the future. Nothing stops you putting proper structures in place for risks that have not yet arisen, provided you are not moving assets away from the existing claim.

Get the right lawyer. A litigation defense attorney is the person you need first. We can look at the planning picture alongside that.

The lesson worth taking from this

If you are reading this because you have been sued, the useful thing you can do is act properly now and plan properly afterward.

If you are reading this and nothing has happened yet, that is the moment this actually works. Protection is available to you today that will not be available the day after a claim arrives.

The same principle in Medicaid

Georgia’s five-year look back on transfers is the same idea in a different setting. A gift made once care is needed can create a penalty period rather than protection.

Both systems reward planning and penalize reaction.

Your next step

If you are facing a claim, speak with a litigation attorney first, and schedule a complimentary 15-minute Strategy Session at 404-549-5001 so somebody is looking at the whole picture.

Nothing here is legal advice, and whether any particular transfer is defensible is highly fact specific.

More is on our Asset Protection Planning page.

Related questions

• What are fraudulent conveyances?
• Is asset protection planning aimed at eliminating legitimate debts?
• What is Asset Protection Planning?
• Why should I consider asset protection planning?

This page is presented for educational purposes only and nothing on it should be treated as legal advice. What applies to you is very fact specific to your situation and your family. Our attorneys are licensed in Georgia and Michigan. This area of law has frequent statutory and policy changes.

   

Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!