Saturday, August 30, 2014

Six Useful Tips For Asset Protection Planning

By Marlene Blevins


When one would have a lot of assets, there will be times that when these little assets would be under attack from outside forces. Of course in order to be able to protect himself, he would definitely need to start putting up some guards early so that he does not get caught off guard. Now to do this, he would need to first do some asset protection planning.

Now probably the first rule that a lot of asset management consultants would state would be to increase liability insurance. Now this will be one of the front lines that can protect one from legal claims that people can state against him. Of course he has to make sure that the insurance policy will cover the situations that may possibly harm his assets otherwise he will have no way to defend himself.

Now a tip for people who are in business would be to make sure that they would always separate their business assets and their personal assets. Now in this type of scenario, one is protecting himself just in case a predator may want to attack his business and go up to his personal as well. If he separates them from each other, then the predator will not likely be able to touch the personal ones.

Now it is a common practices for newlyweds to open up a joint account wherein both of the spouses can access the money. Although this is idea for practical and budgeting purposes, it is not a good idea if one would want to try to protect himself. So one way to solve this issue would be to have a joint account but also a separate account for personal use.

Also, another rule when having joint accounts would be to make sure that the balance is as low as possible. So just in case the one sharing the joint account would want to attack, at least not much will be taken from the joint account if ever. This would usually be done if one would get married and would have a joint account with his spouse.

Now if one has a property that he is renting out to tenants, he must also be vigilant in protecting his personal assets. Now in order to do so, he has to first create a business or a corporation that would take over the managing of the rentals instead of him. So in the event that a tenant attacks him, the tenant may only go as far as the assets of the business.

One rule in asset protection would be to never bank on bankruptcy. Although sometimes it is a strategy to wipe off debts, it does not always go the way one would want it to. If he would declare bankruptcy, then he better not except his assets to not get touched along the way.

So if one would want to protect all of his assets, he must take note of these things. Now he has to act fast and early if he would want to put up guards. If he acts late, then someone might already be plotting against him.




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