What is Asset Protection? | Legally Mine

Asset protection is something that people tend to misunderstand. Some see it as a tool for avoiding financial responsibilities like paying debts or taxes, or essentially as a means of covering for fraud.

In reality, asset protection is an important part of financial planning that can protect you from fraudulent or petty claims. The key is to make sure it’s done properly. That’s why turning to experts like Legally Mine is important to your financial planning.

Asset protection is implementing financial planning strategies to keep your assets safe from legal claims against you. There are a number of strategies you can utilize, such as:

• Liability insurance: This is a good first line of defense. One shortcoming, however, is that it can open you up to more legal claims from people who see it as easy money.
• Corporate designations: Using corporate designations like limited liability can also protect you from losing assets.
• Financial planning: This is an all-around strategy that planning experts like Legally Mine can help you with. It includes designating certain assets as exempt from claims against you.

How People Get Asset Protection Wrong

The biggest mistake people tend to make when trying to protect their assets is waiting until it’s too late to do so. It is unlawful to engage in asset protection after a claim has been filed or is even about to be filed against you. This will appear fraudulent and is where many misconceptions of asset protection arise.

How to Do It Right

Instead of thinking of asset protection as a response to a claim against you or your property, it’s important to think of it as an integral part of your financial planning before anything happens. That’s why turning to someone like Legally Mine who can integrate all key elements of your planning is a sound strategy. You’ll want to review your financial goals like retirement and estate planning with your financial and legal planning team. Try to set timelines for these milestones, and have a clear picture of your net worth and assets that have protection potential.

Once you have a clear picture of your assets and various defense lines established, you can protect yourself from legal claims against your property. Rather than being a tool for committing fraud, asset protection -- when done properly and ahead of time -- is a way of keeping yourself safe from fraud.

Call Legally Mine today for a free consultation. We have the expertise to answer your initial questions formulate a strategy to protect you and your assets, making us your number one choice for asset protection. This will give you the peace of mind you want and the protection you need before you ever need it.