Some helpful tips about asset protection.

You 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 competent.

Lay low

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 state.

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.

At assetprotection101.com, we offer the latest news developments, strategies, resources and links relating to asset protection. Whether you a real estate developer, real estate owner or any business owner looking to better educate themselves on how to protect their assets, we're sure you'll find our site helpful in making a better decision about your financial future. You may even choose to receive our free monthly newsletter to keep you on top of the latest developments in asset protection.

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