Everyone wants to protect their assets, but not everyone knows how to go about it. Do you have an asset protection plan in place?
If not, you might end up losing important pieces of your life. You need to anticipate the actions of your enemies so you can keep yourself safe. To help you out, we’ve created this simple guide to giving you the key dos and don’ts of asset protection planning. Keep reading to learn more!
Do’s
The following are the 3 important things that you should do or include in your asset protection plan:
1. Plan As Early As Possible
When it comes to asset protection planning, it is always better to plan as early as possible, as you’ll have more time to put into place the necessary asset protection strategies.
The earlier you start planning, the less likely it is that your assets will be at risk. If you wait until your assets are at risk, it may be too late to effectively protect them.
2. Use A Lawyer
When you’re planning for asset protection, you should use a lawyer to help you with the process. Lawyers can provide valuable guidance in choosing the best legal structure for your assets like trusts or LLCs.
They can also help you navigate the complex web of laws and regulations surrounding asset protection. Lawyers can help you plan for contingencies, like what to do if you’re sued or your assets are frozen.
3. Separate Business from Personal Assets
An important aspect of asset protection planning is to keep your business and personal assets separate. This will help to shield your personal assets from creditors if your business is sued.
By doing this, you can also help to ensure that your personal assets are not used to pay for business debts.
Don’ts
If there are things you should do, there are also things that you shouldn’t do because of the importance of asset protection. These are the top 3:
1. Think Asset Protection Planning Can Replace Insurance
If you’re considering using asset protection planning to replace your insurance, you should be aware of the potential risks. Asset protection planning can be a complex and expensive process, and it is not always 100% effective.
Insurance is a relatively simple and affordable way to protect your assets. Insurance can also be customized to meet your specific needs – something asset protection planning cannot usually do.
2. Try to Control Everything Too Much
When it comes to asset protection planning, it is important to remember that you cannot try to control everything too much. While it’s important to be proactive, you cannot control everything.
There will always be some risk involved. Trying to control everything too much can actually lead to more problems and make it more difficult to achieve your asset protection goals.
3. Rely on Bankruptcy as a Last Resort
You shouldn’t rely on bankruptcy as a last resort during asset protection planning because bankruptcy is a public proceeding. This means that your financial information will become a public record.
Also, you will likely be required to give up some of your assets in order to repay your creditors. Finally, bankruptcy can have a negative impact on your credit score, which can make it difficult to obtain financing in the future.
Top Tips on Asset Protection Planning
While there are many dos and donts of asset protection planning, try to seek professional help if you have any questions or concerns. An experienced asset protection attorney can help you with this, and give you peace of mind.
So go ahead and start planning your asset protection today!
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