Earning money is difficult enough. But if you’re earning a lot as a high-income professional
or by running a business, the game isn’t just about earning money. It’s about keeping
money. It’s about asset protection.
Asset protection can make you confident that you’re going to be able to take care of
yourself and your family. You’ll have assets that stick around even during a financial disaster,
during a personal injury, or during a lawsuit.
With the right asset preservation strategies and team, your assets can be diversified,
protected, and out of the reach of certain creditors and lawsuits. Below are a few of
the possibilities.
Diversify Your Products
The first strategy to understand is true diversification. Many people think they’re
diversified because they own some different mutual funds. But that’s not what we’re
discussing.
You’re truly diversified when you have a plan involving multiple products and services
that all work to preserve your assets. That’s not just mutual funds! A good plan can include:
Life insurance
- Liability, property, and casualty insurance
- Corporate entities (like LLCs)
- An IRA or other retirement accounts
- Tax-minimization strategies
- Trusts
- And more
Look at that list. You can understand why a key part of any plan is paying for excellent
advice. You can always get free advice on the Internet, but it may not get you the results
you want! Find a trusted team that can set up a winning mix of products and services for you.
Transferring Assets to Trusts and Entities
Trust funds are not about spoiling rich kids. They are about protecting your wealth from
predatory lawsuits and other actions that can target your assets.
A major step in asset protection is taking assets out of your own name. During a legal
proceeding, certain exempt assets can’t be touched. But non-exempt assets that are in
your name can be taken away to pay debts or judgments.
If you don’t have your name on non-exempt assets, though, they’re much less likely to be
targeted. A good asset protection team can help you move certain valuable assets into
the control and name of legal entities, such as LLCs.
When an LLC owns your asset, a lawsuit directed at the owner of the asset can only target
the LLC and the assets it holds. If someone was hurt at your LLC-owned property, for
example, that person could only sue the LLC, not you personally.
You can also transfer certain assets out of your control into an asset protection trust,
which is a type of irrevocable trust. That way, a creditor or lawsuit plaintiff can’t access those
assets, because they’re legally governed by the trust, not by you—even if you’re the
beneficiary of the trust.
Get the Right Professional Help
It takes experience and professional knowledge to set up LLCs, trusts, certain insurance policies, and other asset preservation products. Make sure your asset protection plan is set up the right way, to give you financial peace of mind. Contact Legally Mine today to learn more.
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