Asset protection is a procedure designed to secure your assets from potential claims. It is often a cycle of protecting your company or personal property against risks like litigation, divorce settlements, and bankruptcy. Asset protection planning will prevent your assets from being seized and make it difficult for others to make a claim on them. There are more reasons why you should work with an asset protection expert to craft a plan that best fits your business.
Reduce Losses
The economy can be unpredictable. During difficult periods, you risk getting sued by your lenders if your business fails to perform well. And if you didn’t protect your assets in advance, your lenders can make a claim on your assets, leaving you broke. Asset protection planning safeguards your assets in many ways. You can consider setting up trusts, using a limited liability company, or other measures to separate your business and personal assets. That way, you can minimize losses and make it harder for creditors to put a claim on your personal assets.
Prevent Lawsuits
Some individuals may choose to target you if they know you have assets on which they can make a claim. Don’t become a victim. Whether your business operates on a big or small scale, you should have asset protection planning in place. If your assets are well-protected, it will be more difficult for your opponent’s lawyer to successfully sue your company. An experienced attorney will conduct a thorough review of your unprotected assets and will determine which assets are vulnerable to a claim.
Also, litigation is costly and even if you win your case, you may still have to pay legal expenses. Preventing a lawsuit in the first place can help you save unnecessary costs. Others will avoid suing you if they know your assets are difficult to get.
Security for Assets Not Covered by Insurance
Maybe you’ve purchased some form of insurance to protect your assets but when you go through the details of your policy, you realize it’s not enough. There are so many aspects to your business that insurance alone isn’t enough to protect. Asset protection gives you another layer of security and fills in the gaps in your insurance coverage.
Shield Your Estates
Asset planning protects your estates against lawsuits. Everyone should use estate planning to protect their assets against lawsuits. There is no reason to expose this huge amount of assets to risk circulation when you can start taking the necessary actions now. Consult your attorney or engage an asset protection specialist to guide you.
Reduce Conflicts
Unexpected conflicts can arise to disrupt your business. Say you’re part of a joint venture with a few other individuals. Your personal assets will remain safe even if one of your partners gets involved in a lawsuit.
Financial Privacy
Asset protection provides you privacy by “hiding” your net worth. You can keep the type of assets or the amount of property you possess private. It has the potential to deter or avoid frivolous claims because you have removed certain assets from the public, or made them difficult to be associated with you.
