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?
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.
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