In order for any asset protection exemption or planning technique to be effective, it needs to be implemented before the event giving rise to a third party creditor’s claim has occurred.  If a person waits until there is an actual specific threat of liability to a third party, then utilization of the foregoing exemptions or asset protection methods may be ineffective as constituting “fraudulent conversions” or “fraudulent transfers.”  Property of a debtor which is fraudulently converted or transferred will not be protected from the debtor’s creditors.  Property is fraudulently converted if ownership is converted into an exempt form of ownership with the intent to hinder, delay, or defraud the creditors of the debtor.  A fraudulent transfer occurs when a debtor sells or transfers property with the intent to hinder, delay, or defraud the creditors of the debtor or without receiving reasonable compensation for the property, if the debtor is insolvent at the time of the transfer or is made insolvent by the transfer.  If property is fraudulently converted or transferred, a court may treat the conversion or transfer as having not happened or may allow the creditors of the debtor to reach the property as converted or transferred.