Protecting Your Assets In The Land Of The Litigious
Did you know that a new lawsuit is filed every twenty seconds in America?
We live in a highly litigious society. The fact is that most of the lawsuits that are filed have absolutely nothing to do with right and wrong. The majority of lawsuits filed are predicated on the desire of one party to extract wealth from another party. And, unfortunately while many people know how to make money, few know how to protect it from the greed of others.
You devote your life to building up wealth and acquiring assets to make life more comfortable for yourself as you get older and to leave something to your heirs. Don’t you believe that owe it to yourself to take some reasonable steps to protect those assets? Are you aware of certain risks you face which could cause you to lose all you have worked for if you do not legally protect your assets?
The importance of asset protection cannot be overstated, and the need to protect assets should not only be a concern for people of a certain age.
Risks are everywhere and can affect people in all walks of life. In fact, some of the biggest risk factors which you could face include:
You could find yourself being sued if you are involved in an accident, or if someone hurts themselves on your property. If you do not have sufficient insurance coverage or you have no policy, your personal assets could be at risk as a result of a lawsuit against you.
2. Business losses or bankruptcies:
Business owners face multiple risks. Some can be due to personal lawsuits or personal financial challenges. However, assets can be in jeopardy if something goes wrong with the company. Depending upon how your ownership is structured, bad business decisions by partners or a lawsuit against your business could lead to personal financial disaster. You need to make your company a separate legal entity through forming an incorporation or other type of specialized business structure if you don’t want your personal wealth jeopardized by a lawsuit, business bankruptcy, or company debts.
3. Nursing home costs and medical expenditures:
If you become mentally unable to manage your assets and have not named an agent, attorney, or trustee to take over asset management, the assets could decline in value as your family takes the time to pursue guardianship proceedings. In that case, someone who doesn’t know how to effectively manage your assets could also be appointed as guardian, resulting in financial loss.
Asset protection needs to be taken very seriously, especially since we live in a litigious society. You could be at risk of losses at any time. Making use of legal tools to protect your assets is generally not something that you should try to handle on your own because of the potential for mistakes and problems. Instead, you need to get the right legal advice from a qualified estate planning professional.