Some helpful tips about asset protection.
don’t need an army of attorneys and suits to protect much of what you’ve
worked so hard for. You may not be able to afford such a sophisticated
asset protection plan. You can however take some very simple common
sense steps to better protect your nest egg.
Seek good advice
While it may not always be practical to utilize an attorney for all of you
planning, it pays to get some general advice when you make these
important moves. It will be money well spent. A competent attorney or
financial planner can see the forest from the trees and probably save
you quite a bit of time and frustration in accomplishing your plans.
Avoid general partnerships
It’s best to avoid becoming involved in a general partnerships. The rub
is that any general partner is capable of committing the partnership to
any number of legal contracts (like a mortgage, lease, etc.). As a
general partner, you and the other partners are jointly and severally
liable, not a pretty picture.
Separate, separate, separate
It can’t be stressed enough that you should always use a separate entity
for each liability generating asset or business and you should never mix
liability generating assets. You are just asking for trouble. You are
making your potential liabilities exponential when you do this.
Beware the experts
You should assume that most asset protection “experts" are dangerous and
unqualified. There are too many scams and scam artists out there. Check
references carefully and avoid any “free” offers or seminars. Be
careful. Seek the advice of those that you know to be trustworthy and
Conspicuous consumption is asking for trouble. If the public senses that
you have some meat on the bone, then frivolous litigation may follow. If
you are not willing to present a modest lifestyle, then try to avoid
having a large portion of your assets titled in your name. In order to
go after your assets, they first have to be found.
Know your local jurisdiction
If you are the target of frivolous litigation, what a creditor can get
will be controlled by state law. Liberal homestead law, pension
protections and personal property exemption will vary from state to
Offshore means offshore
Because no country in the world automatically recognizes U.S. based
judgments, offshore entities are afforded substantial protection. Many
of these countries think that our laws are nonsensical. That is the
primary reason why many choose to go offshore with their assets.
Insurance is the best insurance
An asset protection plan might be crucial to your overall financial
plans. For the dollars expended, insurance offers an excellent way to
hedge some of your risk. Very often the main value of a good liability
policy is that the insurance company must provide you with professional
legal counsel for your defense.
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