A well-outlined asset protection plan is a powerful deterrent against lawsuits. Asset protection planning involves a comprehensive and integrated estate planning strategy that includes short- and long-term financial objectives. When planning, your focus should be to devise a plan that addresses and supports both your professional and personal goals. Unfortunately, we live in a society where creditors and individuals can be predatory against people with substantial assets, and knowing that the average person never wants to go to court often force people to settle frivolous lawsuits as their game of choice.
Asset protection plans differ depending on the kinds of assets owned. High-risk assets include tools, business equipment, rental properties, and vehicles. Safe assets include stocks, bonds, and bank accounts.
If you own a business, your primary objective is to separate personal assets from your business assets to prevent any parties from going after your assets. Corporations like LLCs, S, and C Corps are going to be some of the traditional ways to initiate that protection whereas sole proprietorship, DBA, or general partnership offer limited or no protection against these types of predators. Trust and offshore accounts also limit the risk of exposing your assets.
Asset protection is priority 1 for those individuals who want to secure themselves from lawsuits however there is no single way to protect your assets as everyone’s needs adherently differ. A qualified asset protection professional will analyze your personal and professional risks, exposure, and possessions along with your goals for you, your beneficiaries, and business so your asset protection plan is specifically catered to your needs.
To discuss your financial planning objectives I am available upon request and can be reached at my website JeffreyLevine.Solutions for inquiries and appointments.