Are Your Assets Protected?

Despite one’s efforts to limit their exposure to lawyers, there usually still exists the possibility that one may be sued for some reason.  It may happen because business is not as profitable as one may hope and their creditors are all requesting payment OR someone slipped and fell at their house OR someone was not paying attention while driving and got into an accident.  Whatever the reason, one should be prepared and make plans for these potential eventualities.

Asset protection is a plan using legal techniques and strategy to insulate assets from the claims of creditors. The techniques are designed to deter creditors from seeking judgment against a person and/or limit the ability of a creditor from seizing one’s property.  Asset protection is not about concealment or fraud.

An asset protection plan may be developed for a single event, such as starting a new business venture, or be more comprehensive to cover all aspects of one’s life. Additionally asset protection may be as simple as restructuring the use or ownership of a piece of property or be more complex and require the need of implementing creditor protection trusts, forming new business entities, creating defined benefit and qualified retirement plans to reduce future, potential creditor claims.

There are many techniques and strategies that people may use to protect their hard earned assets.  It is always highly recommended that one should consult with accountants, financial planners and attorneys who are experienced and skilled to establish a wealth preservation and management plan that fits one’s particular goals or needs.