Whether you want to protect your assets so that you can easily hand them to the next generation or you simply want to keep them safe from litigation, asset protection is an important matter to put quite a bit of thought into. Everyone wants to keep their property safe and secure. Here are some solutions you can use to keep your assets protected:
- Use an LLC. An LLC is a Limited Liability Company which can be made legitimate with only an owner and a member and can be used to include assets under, as long as the LLC does not directly pay for personal expenses. Property is protected under an LLC in that creditors cannot seize it and it cannot be taken for the payment of personal judgements. Be careful with this one, however, as property can be seized if lawsuit is brought against the LLC itself.
- Use a Trust. Prepare for the possibility of creditors attempting to seize property ahead of time and create the appropriate trust to protect your assets. Trusts can help you avoid probate, lower your estate tax liability, and keep your assets safe for beneficiaries. Remember, the type of trust you should use will differ depending on the type of asset, or assets, you want to protect.
- Use Insurance. Purchasing insurance is almost a given when it comes to asset protection. Although insurance does work well together with the other methods of protection, it does not protect as well itself. Using an LLC or a trust both serve to prevent litigation or loss of property, while insurance is more of a compensation measure to make up for assets lost. Insurance, therefore, is important but should not be taken as the only method of asset protection.
A good amount of asset protection should be catered to the circumstances and what particular assets need to be protected. For more information on asset protection, or recommendations for your particular situation please contact us! We are happy to help.
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