In A Litigious World Asset Protection Is A Necessity
Why consider asset protection?
We’ve heard it over and over that “Necessity is the mother of invention.” Unfortunately, that is definitely true when it comes to asset protection…
Necessity has given birth to the custom of insuring our cars, our homes and our toys such as boats, as well as our valuable belongings such as jewelry. Most people typically think about what they are going to leave behind for their children, if anything. Generally, asset protection isn’t thought about as much.
So many people fail to consider that they could become the target of a lawsuit, either legitimately or falsely.
The fact is that people are looking for reasons to file a lawsuit. There are actually people who look for new businesses to target with a lawsuit. Likewise, you never know when someone might decide to come after you for whatever assets you might have.
Today, having an asset protection plan is as important as having car and home insurance.
Here is a definition that will hopefully help you understand the role of asset protection in your life. “Asset protection is a set of legal techniques and a body of statutory and common law dealing with protecting assets of individuals and business entities from civil money judgments. The goal of asset protection planning is to insulate assets from claims of creditors without perjury or tax evasion.”
Don’t let the term “creditors” fool you.
You don’t have to owe anyone money for someone to file a frivolous lawsuit against you. Someone can simply make a claim that you were somehow responsible for an injury or a loss.
Once a lawsuit is filed against you, you will not be able to put an asset protection plan in place.
That’s why it’s important to take the initiative and put an asset protection plan in place. Of course, the majority of people are not involved in lawsuits, but during the times in which we live, like I said before, necessity seems to be pointing the way to the widespread need for asset protection.