Asset Protection
Asset protection planning arose from the actions of creditors and results of lawsuits that often bled out a family’s wealth.
Asset Protection Planning
One of the more overlooked aspects of personal finances is asset protection planning. While most people are focused on the acquiring of wealth and investing it wisely, protecting assets is normally not thought of until creditors or a lawsuit strikes. By creating a proper plan for the protection of your assets, you are in a stronger position when dealing with the unexpected.
What is Asset Protection?
It is the legal process where exemptions to your assets are put into place. This means that certain aspects of your finances cannot be tapped by creditors or collected in lawsuits. In this manner, you can deal with creditors from a far stronger position since your assets are now much harder to obtain.
It may sound counterintuitive at first, but asset protection planning is not just for the wealthy. Anyone who has accumulated wealth should consider the protection of their assets. Such assets include stocks, bonds, real estate, and any other investment that has inherent value. An asset that may be claimed by creditors or others should be protected.
Asset protection planning arose from the actions of creditors and results of lawsuits that often bled out a family’s wealth. What took many years to build was taken away overnight with a single action.
How to Protect Your Assets?
There is no one method that applies to all people on how to protect their assets. What can be said is that almost every state has exemptions that allow for individuals to protect certain aspects of their wealth. Understanding all the ramifications of what is protected already and what can be placed under protection will require an expert in asset protection.
Review
Everything starts with a review of your current situation. This means going over what you own and how vulnerable your assets are in terms of creditors, lawsuits, and the like. The evaluation is conducted by a lawyer or law firm that specializes in asset protection planning.
Structuring Assets
This is a legal process in which your wealth is evaluated and structured in such a manner to protect what you own. This includes your property, investments, business, and even cash you might have on hand.
Legal Options for Unprotected Assets
Not all assets can be protected under the law. However, there are steps that can be taken to make it more difficult for creditors or outside agents to claims such assets.
Risk Management
Not all assets can be protected under the law. However, there are steps that can be taken to make it more difficult for creditors or outside agents to claims such assets.
By engaging in asset protection planning, you can identify areas of your wealth and property that can be protected. Such planning can save you thousands of dollars in case you are sued, or claims are made against your wealth. Call John Tallarido P.A. for more information on how you can protect your wealth.