Friday, February 1, 2019

Asset Protection - What Works and What Doesn’t


As a professional, you run the risk of losing everything if you’re not properly safeguarded with a solid asset protection strategy.

That’s why you must protect your assets against:

·       Lawsuits
·       Tax Liens
·       Bankruptcy
·       Divorce

How do you protect yourself and avoid financial harm?

Legally Mine offers 11 proven asset protection and lawsuit protection strategies that work.

1- Don’t Put a Target on Your Back

There are about 1 million lawyers in America. That amounts to 1 lawyer for every 300 residents!

For that reason, you need to make your wealth less visible. How? Avoid being perceived as having deep pockets, both in everyday life and on paper.

2- Don’t Procrastinate

If you feel the need to shield your assets, it’s probably too late. At this point, your actions could be interpreted as a “fraudulent transfer”.

You’re better off assuming you or your business will one day be up against legal action and taking asset protection seriously starting now.

3- Get More Than Enough Insurance...Then Get More

Insurance is your first line of defense in asset protection. All other actions are considered supplemental to it.

In every policy, there is an exception and chances are fair that your policy won’t pay. Take out multiple policies and consider an umbrella policy to protect against any gap in coverage.

4- Don’t Let Your Personal and Business Financials Commingle

If your business assets and your personal assets are not 100% separated, you open the door for plaintiffs to assess damages based on both.

This means you must always keep separate bank accounts and credit cards.

5- Review Your State’s Laws

Every state has different laws. It’s in your own best interest to know which asset protection and lawsuit protection strategies are legal in your state.

Some of the differing state-to-state laws surround topics such as:

·       Homestead Exemptions
·       Titling of the primary residence as “tenants by the entirely”
·       Federal bankruptcy exemptions for ERISA-qualified retirement plans and IRAs

6- Do Your Homework on Every Asset Protection Tactic

The growing need for asset protection has generated a proliferation of simplified information. Quick explanations are great for an introduction, but the reality is that every situation is unique and the details to cover are vast.

·       Do your homework.
·       Weigh the benefits as well as the costs.
·       Hire a professional with expertise in asset protection and legal protection, such as Legally Mine.

7- Don’t Try to Conceal Assets

It’s common to panic if you sense your unprotected assets will be taken...but don’t! To reiterate strategy #2, don’t try to conceal assets. Otherwise, it could be defined as a “fraudulent transfer.”

Protecting yourself beforehand is by far the best option, but if you didn’t, try one of the following tactics instead:

·       Refuse to settle and go to trial.
·       Appeal the verdict.
·       Negotiate a lower amount.
·       Work out an affordable payment schedule.
·       Bring your situation to the court of public opinion.

8- Diversify Your Asset Protection Strategies

Don’t just stick to one or two asset protection tactics. Use multiple strategies. That way, if one of them doesn’t work out and you are left with a devalued asset, your other assets will still be left intact.

9- Realize You Are Not an Exception

There are certain professionals who are especially vulnerable to lawsuits:

·       Medical doctors
·       Dentists
·       Architects
·       Psychotherapists
·       Lawyers

If you are in one of these professions, don’t assume you’ll be the exception. You may just end up losing everything in a malpractice lawsuit if you’re not prepared.

10- Don’t Try to Avoid the Complexities of Asset Protection

It’s not wise to take financial shortcuts. You will regret it should problems arise.

If you are overwhelmed by the sheer amount of details, paperwork, and legalities that are involved in full asset protection, hire an expert like those at Legally Mine to do the job right. You’ll never regret it.

11- Keep Going

Trust us, your situation is never set and you’re never done with asset protection.

Every time there is a change (state law, family relationship, health, job, real estate market, etc.) it also changes your assets and the protection of them.

Even if you are currently “set,” there is always another strategy to implement that will further protect your assets or that can increase your wealth.

Continually reassess and tweak your asset protection and lawsuit protection strategies to reap the rewards of a future full of financial success.

If you have any questions or want to better protect your assets, contact Legally Mine today!

No comments:

Post a Comment