There are many legal issues to considering when
utilizing asset protection.
The concept of protecting your assets is hardly a new concept. We
utilize the principle in many of the things we do on a regular basis.
We form a corporations or limited liability company in order to
protect our personal assets from a catastrophic loss due from a business
We protect ourselves by purchasing any number of policies, including
homeowners insurance, health insurance, automobile insurance, boat
insurance and so on.
We prepare a will in order to make sure that in the event of our death,
we have some control in protecting those assets that we want to be given
to our loved ones.
basics steps are not nearly enough. We are in an extremely litigious
society. Lawyers often operate under a contingency fee model. Because of
this, predatory litigation could rear its ugly head on just about every
American who has achieved even a modest level of success. Asset
accumulated over a lifetime could be lost overnight.
You stand a greater chance of losing your assets as a result of a
lawsuit then from and act of god, automobile accident or catastrophic
illness. Even when these unexpected events occur, your insurance will
cover only a portion of your losses.
Americans are now adding asset protection planning to their estate
plans. With the concerns about a legal system that has gone out of
control, we recognize that there are plenty of people in search of
someone with deep pockets.
While it should be obvious that physicians, accountants, architects and
other successful business owners should utilize assets protection, there
are lots of circumstances that would dictate a plan. Real estate owners,
rental property owners, elderly citizens with long term care issues,
parents of teenage drivers and just about anyone else concerned about
liability should be concerned.
When planning for the inevitable possibility of litigation in your
future, you should identify the risks inherent in your business or
lifestyle. After careful consideration of those risks, you should
consider the following.
Ensure that your homeowners, automobile and professional insurance
policies are in force and that the coverage is sufficient for your
personal and professional circumstances.
Consider obtaining a blanket umbrella liability policy to enhance your
current property and casualty insurance. This coverage is often very
inexpensive and would be well worth the nominal investment involved.
If you are a business owner, make sure that you've adequately protected
your personal asset from you business liabilities. You should consider
holding valuable business assets (buildings, equipment, copyrights,
patents, etc.) through a separate business entity and lease these asset
through your primary business.
Carefully review your estate plan, making sure that you have considered
the possibility of probate and estate taxes, and assembling these
entities to protect you and your loved ones from frivolous litigation or
Their are a variety of techniques, including limited partnerships,
limited liability companies and trusts, that can be utilized that
protect your assets while allowing you some benefit and control over
your assets. These asset protection measures involve placing assets out
of the reach of potential creditors while you or your loved ones
maintain control of assets, thereby creating ownership that cannot be
lost to an unforeseen creditor action or lawsuit.
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.