Identifying asset protection strategies is very important if you hope to achieve financial security. While saving money is very important, your nest egg could be lost in the blink of an eye if you have not taken steps to protect everything that you have worked so hard to acquire. The good news is, there are steps you can take and things that you can do in order to protect your assets- you just need to understand the right steps to take.
Eghrari Law Firm has extensive experience providing assistance with asset protection. Our legal team is here to offer the assistance you need in making sure that you make full use of legal tools to keep your wealth safe. Give us a call at (631) 265-0599 to find out more about the key strategies that you can use for asset protection.
Asset Protection Strategies You Can Use
In order to protect your financial security and keep your assets safe, you must identify what risks you face. You must take targeted steps to address those particular risks. These risks will be different depending upon lots of different factors, including your personal and professional situation. For example, if you are the owner of your own business or an investor in a partnership, you have a very different risk profile than a senior citizen who is retired. Everyone, however, faces some risks to their assets, no matter what their life situation is.
Because you must identify your own risks and use the right legal tools to protect you from those risks, the asset protection process will be different for everyone. An experienced attorney can help you to determine the right asset protection strategies for your use. For example, some of the different tools and strategies which may be most beneficial to you can include:
- Investing in IRAs and other accounts afforded special protection, like 401(K) accounts. Tax-advantaged retirement accounts are treated differently in the eyes of the law than various other investment accounts, including receiving special protection in case of bankruptcy.
- Purchasing insurance coverage: A lawsuit is one of the biggest risks for both individuals and businesses. Having sufficient insurance coverage can reduce the chance that a lawsuit will result in the loss of your personal wealth. If your policy limits are too low and a large judgement is entered against you, you could be left with liens on your property, with wages garnished, and with other efforts to collect. By buying sufficient insurance, you make certain your insurer will pay for legal fees, court judgements, and other associated costs. Auto, renters, homeowners insurance, business liability insurance, and umbrella policies can all protect you, while health insurance can make sure you don’t face substantial financial loss due to an illness.
- Incorporating your company or creating an LLC. Owning a business can be one of the best ways to build wealth, but it can also put your wealth at risk. You could find yourself facing personal bankruptcy because of out-of-control business debts, even if those debts were incurred by a partner. If the company is sued, this could also lead to a loss of your personal assets. You don’t want this to happen to your wealth, so should make certain that you have chosen a business structure that protects you from these outcomes. Incorporation creates a separate legal identity for your business. As long as you don’t co-mingle personal funds or fail to follow corporate formalities, your potential for loss will be limited to your investment in the company.
- Creating a power of attorney: One potential threat to your assets is mismanagement or a delay in the assets being cared for in case of incapacity. If you have created a power of attorney, the agent you designate to act on your behalf can immediately begin managing assets in case you become incapacitated. There will be no delays in which your family pursues guardianship proceedings, and you won’t have to worry about someone you don’t trust being appointed to care for your property.
- Creating trusts. Trusts serve many purposes, from allowing the transfer of assets upon death in a timely manner to making sure assets are managed in case of incapacity to ensuring that your wealth is not lost if you need to go into a nursing home. You need to explore different kinds of trusts that could work for you.
- Creating a legacy plan. This plan can help to ensure your wealth passes to those you love without loss.
These are just a few of the key asset protection steps which you should consider if you want to make sure that you are able to use your money to provide for yourself and your family.
How an Asset Protection Lawyer Can Help You
An experienced asset protection lawyer can help you to identify the right asset protection plans for your situaation. Give us a call at (631) 265-0599 or contact us online to find out more about how Eghrari Law Firm can help you.
- Three Tips to Provide Inheritance Planning Insight - June 11, 2021
- Veterans Pension Can Defray Long-Term Care Costs - June 7, 2021
- How Can a Special Needs Trust Trustee Use the Funds? - June 3, 2021