Sudden
wealth can be a life-changing experience that can improve your life and the
lives of those around you, but only if you keep it. Those with more assets are
bigger targets for lawsuits. Don’t let your sudden wealth suddenly get stripped
from you. Protect your assets before you get the windfall and you will sleep a
little easier knowing your assets are better shielded.
If you have come into a sudden
amount of wealth – whether by windfall, asset sale, or inheritance, etc. – then
now is also the time for some immediate asset protection planning.
Structuring your ownership and
protection of those assets is an important step you cannot afford to overlook.
However, such structuring and protecting can get complicated. Much of what you
can do (and cannot do) hinges on the very nature of the assets and the risks themselves.
Thankfully, there are some
common strategies worth exploring. Forbes
recently offered six proven asset protection strategies to shield both you and
your important assets.
The article, titled “6 Asset Protection Strategies To Shield Your
Wealth,” is worth a read.
If you are pressed for time,
here is a capsule summary:
- Increase liability insurance: insurance is a product to
solve risk, after all, and liabilities are exactly the kind of lightning rod to
be struck. - Separate assets: shared assets, with a spouse or family
members, means doubling the risk on those assets, so separating them into your
own accounts (or entirely out of your estate and control) can shield them. - Consider a business structure: the business exists as
an entity that is not “you” and its liabilities are not your liabilities, so
owning special assets (like rental properties) through an LLC or corporation
will work to shield you and your individual assets.
For more information and articles on
estate planning and elder law topics, please visit our website
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Reference: Forbes
(October 9, 2013) “6 Asset Protection Strategies To Shield Your
Wealth”