Assets & Liability Protection
Asset protection is the process of legally protecting your assets from creditors.
Individuals with assets in the form of businesses, real estate, stocks and other resources want to protect their wealth.
They do this by protecting their assets from potential lawsuits, vendors and creditors through several methods.
The approaches to protecting your assets are almost as varied as the assets themselves.
Below you will find some (not all) examples.
Domestic Asset Protection Trusts
Accountants, lawyers and professionals calls the domestic asset protection trust “the most affordable asset protection tool” available in the U.S. This type of trust is aimed at protecting your assets from creditors.
These structures are complex and generally require the services of an institutional trustee. The benefit of this strategy is that your assets can be placed beyond your creditors’ reach but within your reach under certain circumstances – generally, assuming the trust is structured properly, after the expiration of the statute of limitations for transfers.
Limited Liability Companies (LLCs)
A limited liability company, or LLC, houses the assets of a business. This legal structure can protect your personal assets from being seized by business creditors. In other words, your home, car or bank account typically would be safe from a business creditor, while your business assets in an LLC normally would not be safe.
Appropiate business structure are also tax compliance and investments efficiency.
Insurance Policies
Liability insurance policies may protect your assets. Here are three policies that may safeguard your house, savings and other assets. Example of this are Professional, Umbrella and Malpractice insurances.