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. For example:

We form a corporations or limited liability company in order to protect our personal assets from a catastrophic loss due from a business venture.

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.

These 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 unforeseen circumstances.

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.
 

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