Are you someone who has made a reasonable amount of fortune in recent times?
Or are you a person who is self employed or in a white collar profession?
Are you in the medical profession?
Does your job require you to deal with people everyday?
Do you own rental income properties and earn income from them?
Or are you the owner or boss of a company?
If you happen to fall under any of the above mentioned categories, you need to consider planning for asset protection right away.
If you are not sure what asset protection is, asset protection is a type of advanced financial planning technique that helps protect your assets from any type of legal liabilities now and in the future.
Contrary to popular beliefs, asset protection does not mean hiding assets, and is not a trick to evade authority. Asset protection also does not involve deceptive agreements or fraudulent transfers. It is simply smart and safe financial planning. It uses the cunning of business and tools of financial planning to safe guard your assets from being extracted by outsiders who do not have any right to or claim on your hard earned money.
In a nutshell, asset protection is the simplest and most inexpensive way of safe guarding your assets in case the situation arises where there is a threat to your assets. These are simple strategies that will make it unnecessary for you to hire the services of attorneys and other experts if the situation suddenly turns against you.
When it comes to protection of your assets, there is no one-size-fits-all asset protection plan or strategy. Defining your goals and needs, and using common sense will absolutely help you to work out the best plan for protecting your wealth against unscrupulous people and endeavors. Below are some useful asset protection strategies:
* The first tip is to keep a low profile by resisting the temptation to show off your wealth and being extravagant. Do not own all your assets directly under your own name.
* If you have more than one asset, then register the names of each asset as separate legal entities.
* Stay away from any types of ventures involving general partnership or handshake agreements. Partners are more likely to drag you into all sorts of legal problems where you and your assets become directly liable.
* The liability laws differ from state to state. Some states follow more stringent rules while laws in other states are comparatively more flexible.
* Do not trust your financial advisor fully. Before trusting somebody with your money, just remind yourself of all the scams that routinely appear in the front pages of the leading newspapers.
Even if you have worked out a foolproof asset protection plan, you should keep a liability insurance, so that if something unjustified were to happen, the insurance will strengthen your defense.