Reasons to Consider Creating an Asset Protection Strategy
By: Barry E. Haimo, Esq.
December 23, 2021
Picture this: you worked really hard your entire life. You built your business from the ground up and you invested shrewdly and aggressively. You’ve got a nice nest egg.
Then suddenly, you’re slapped with a lawsuit. Now your nest egg gets picked off and your property and other assets are taken as well.
How can you guard against this type of vulnerability? Consider engaging in an asset protection strategy as part of estate planning.
What Is an Asset Protection Strategy?
An asset protection strategy is a legal method to protect any amount of wealth from a variety of circumstances in which it could be vulnerable to loss in the future.
Without an asset protection plan, your wealth is susceptible to several scenarios — like significant taxes, chaos, court, costs, conflict (litigation), and a host of unpleasant and destructive surprises.
What If You Don’t Have an Asset Protection Strategy?
You’re vulnerable to lawsuits. Without the proper protection, your wealth could be vulnerable to any type of litigation. including frivolous claimants that are simply manufacturing suits to gain a settlement. Be sure to protect your assets in the event of a lawsuit.
Your business and personal wealth could be intertwined. If you’re not using a comprehensive asset protection strategy, you might encounter a situation where you’re personally responsible if your business fails. Take the Business Planning Stress Test to see if your business is protected.
There might be chaos in the case of incapacity or death. Part of a great asset protection strategy is knowing how to approach your personal and business affairs should you experience unexpected incapacitation or death. Advanced care directives are a key element of our asset protection strategy.
Who Should Consider an Asset Protection Strategy?
Having an asset protection plan isn’t just for the super-wealthy. If you fall into any of these categories you should consider asset protection.
You own real estate: Simply owning real estate means you have property that could be potentially seized by creditors under specific circumstances.
You work as a professional: If you are in any number of service professions, you can potentially be sued in regards to your work. Most often these suits are filed against doctors, lawyers, and real estate investors, but others can be vulnerable as well.
You own a business: If you own a business, you should consider an asset protection strategy to safeguard against the harmful effects of having your personal finances and business finances mixed.
You’re close to retirement: To make sure retirement funds are secure, looking into an asset protection plan might be a wise choice for you.
You actually are super-wealthy: Of course, if you have lots of investments and property, you should definitely consider guarding your assets against possible legal complications.
When Is the Right Time to Put an Asset Protection Strategy into Place?
The earlier, the better. In fact, waiting until you’re already being sued to put an asset protection strategy into place can be considered fraud. Make sure you get started today so you can sleep better tonight knowing you’re protected.
With our 4-step unique proven process, it’s easier than you think to safeguard your hard-earned wealth and leave a legacy that makes you proud. Protect your family, assets, business, and gain peace of mind knowing you’re prepared and in control. Call us to get started today at 954-228-3369, and subscribe to our YouTube channel for more estate planning tips.
Barry E. Haimo, Esq.
Strategic Planning With Purpose®
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