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Asset protection resources for the real estate owner

There are numerous techniques used in asset protection.

Asset protection strategies can be put into three broad categories; insurance based asset protection, liability limitation asset protection and wealth segregation asset protection. In many cases the three would be used in conjunction, depending upon your personal circumstance and personal needs.

Insurance based

Often the easiest and most effective forms of asset protection, insurance would normally pay for up to a specified amount of money to or for you should an unexpected event occur. Any number of events could occur, including serious illness, damage to someone else’s property or person or a being the victim of a natural disaster. With respect to liability, insurance might cover the actions of you, a family member or employees action that results in someone being injured or property being damaged. The policy in place will allow the insurer to pay for the economic and non-economic damages that you or another person suffers, thereby protecting your assets!

On top of your home, automobile or business policy, many choose to take out a general liability umbrella policy to add extra protection that the basic policies may not cover. A $1,000,000 personal liability umbrella for an individual might cost only $200 to $300 annually.

Limited liability entities.

Businesses and investors often use limited liability companies and corporations as a form of asset protection. With the use of these entities, an unexpected tragedy or accident would protect the owner and shareholders property. The liability in this case would be limited to the assets of the entity, requiring the liquidation of the entity but not all of the assets of the parties involved. Without the protection of the limited liability entity, the business owner’s or real estate investor’s worst case scenario could be that they could lose almost everything they own..

In general a limited liability entity provides all the same asset protection as a corporation without a lot of the hassles and paperwork. A corporate entity might require stockholder meetings, a board of directors and of course records, records, and more records. A limited liability company would not.

Wealth segregation.

Many times, a person might utilize asset protection by putting large portions of one’s assets outside the reach of creditors trying to collect or litigants trying to sue.

Current laws protect quite a bit of personal assets, such as homestead protection, personal assets and retirement accounts. Wealth segregation methods take it one step further. Many individuals can contribute assets to a trust for specific uses. The principal of the trust is often beyond the reach of creditors or plaintiffs. When one uses a trust for asset protection, they will often choose a state or country that has favorable treatment for the creators and beneficiaries of the trust but not to creditors. All of these strategies are useful in protection of the assets that you have accumulated. Utilize the resources of this site to determine which option will work best for your personal circumstances.

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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