Protecting Your Assets
Protecting your assets is an important part of your financial plan. Once you make it you want to keep it.
If you have money, or insurance, you are at risk.
* Personal injury claims or divorce
* Civil rights suits
* Environmental cleanup liability
* Professional and product liability
* Employee injuries
* Occupational Safety & Health Administration violations
* Federal and state tax liens
Steps to better protect your wealth.
1. Divide and Conquer
Always use a separate entity for each liability generating asset and never mix liability generating assets. For example, an apartment house should not be owned by the same entity which owns a printing business.
2. Get Good Advice
Get a local lawyer. Pay for some advice every time you make an important decision, and don't be afraid to negotiate fees.
3. Avoid General Partnerships
Avoid general partnerships and handshake agreements. General partners can commit the partnership (and hence every other general partner) to any legal contract (like taking out a loan). All general partners are jointly and severally liable.
4. Assume that most "Asset Protection Experts" are unqualified
Always check references and avoid the professional "seminar givers." Never trust anyone who asks you to trust someone else with your money and be cautious of anyone who promises to save you income taxes.
5. Protect your privacy
Learn to live and portray a modest lifestyle. Consider using trusts to hold some of your assets to protect them from frivolous risk and exposure. Be cautious of any organization asking for your personal information, find out exactly why your personal information is needed, and require the person or organization asking for your personal information to provide confirmation of their authority to ask for your personal information.
6. Each State is Different
Information a creditor can obtain is often controlled by state law. With good advice, you may be able to keep assets even when faced with serious creditor attack.
7. Never Ignore a Lawsuit
If you are served always seek good advice.
8. Keep Insurance
Even if you have a state of the art asset protection plan you still should keep adequate insurance. Often the main value of a good policy is that the insurance company must provide you a defense.
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