The last thing that you want after accumulating a considerable amount of wealth is to run into a situation that compels you to part with a chunk of it. With proper asset protection, you can keep your wealth safe.
Have you ever heard of the homeless man who was sued for all his life savings? No one has the time to sue a penniless man as nothing good can come from taking such an action. On the other hand, few hesitate to file a suit against individuals who are considered to have deep pockets.
Given that wealth accumulation is quite an arduous task, you certainly don’t want anyone one taking advantage of your hard to work for a smooth ride to the top. Gleaning from law firms such as Cantley Dietrich, you need to make a few proactive measures to protect your wealth.
Most people don’t realize the value of having insurance until it swoops in and saves the day. Whether running a business or at a personal level, you need insurance coverage. Homeowners insurance covers you should someone get hurt while in your property. Without such coverage, a simple slip and fall by a dinner guest could see you part with thousands of dollars in compensation.
If you’re in business, you can’t afford to overlook the need for commercial liability insurance. It protects you from injuries or property damages that happen in your business premises. Such policies cover both the legal costs and any legal payouts in case you’re found liable. Compared to the sums you’d shell out in compensation; the insurance premiums are worth their weights in gold.
Hands down, creating a trust is the most effective way to protect your property and assets. Simply put, once you transfer assets to a trust, they are no longer yours. Therefore, they are out of reach to any potential creditor, should you ever run into financial headwinds somewhere down the line. Other than keeping creditors at bay, trusts also safeguard your wealth from spendthrift beneficiaries.
There are many instances where heirs have run the family fortune into the ground as soon as they’ve got it. If you have any misgiving about family member’s ability to manage their wealth, establishing a trust can help you out of this bind. You can ensure that they’re well provided for without putting your fortune at risk.
Well, that’s not to say that you give everything away to charity. Instead, that is to imply that you should own nothing personally. As surprising as that might sound, it’s perfectly legal, and you won’t run afoul of the law. Anything tied to your name is fair game if you get sued personally.
You are better off not holding non-exempt assets in your name. Instead, you should own them through a trust that keeps your name off the public records. You get to protect the assets and can name your heirs as beneficiaries without encountering legal hurdles.
It takes blood and sweat to accumulate a great deal of wealth, and as such, you need to make credible measures to safeguard it. Without proper steps, you can leave your assets vulnerable to lawsuits and end up losing a considerable chunk. Working with a seasoned attorney, you can find legal ways to protect your assets without running afoul of the law.