Asset Protection And Financial Planning Go Hand In Hand
Too few people take financial planning and asset protection seriously.
Typically, most people only think about protecting their property or automobiles with the required auto and homeowner’s insurance. However, our society is litigious. Asset protection means safekeeping property from someone who wins a lawsuit against you. Lawsuits can be initiated – and assets claimed – if someone’s been injured in an accident or when a mortgage isn’t paid.
How can you protect your assets from lawsuits?
Asset protection planning helps protect your assets from lawsuits. In the asset protection process, you convert assets that can be claimed by creditors (non-exempt assets) and move them out of reach. Out of reach assets are called exempt assets.
Before you can have an asset protection plan you must have a financial plan. You cannot begin an asset protection plan if you are already in a lawsuit. Some folks think they can simply transfer assets out of their names if and when they are in a lawsuit, but a court will see right through these ‘fraudulent’ transfers. The judge will have the transfers reversed and the assets turned over.
Examining your short term and long-term financial goals, you’ll understand your current and future sources of income. You’ll also see how much money you will need to retire. Also, you’ll see how much you can leave your heirs via your estate after death. When your financial plan is in place, you can review your current assets to determine if they are exempt from creditors and, if they are not, then reposition them to become exempt. A financial plan also allows you to position assets you intend to acquire in the future, protected from potential creditors.
You never know if you will be part of a lawsuit.
But, you can have a plan in place that will protect you in the event that you are. Today there are digital assets as well as the more traditional tangible assets to protect. Have a plan in place that will protect you in the event the unexpected happens. Call The Estate & Asset Protection Law Firm for a consultation.