What Type of Assets Should You Protect?
If you own any assets, you need asset protection. Protecting your assets is as important as acquiring them in the first place. If you do not protect your assets, all the hard work you put in to be able to obtain them can be quickly undone. When you have a legal and effective asset protection strategy in place, you can effectively prevent a claim against your hard-earned assets by, among others;
- a creditor,
- a person who wants to challenge your estate after your passing, or
- a partner in the event that a relationship breaks down in the future.
People assume that asset protection is only for wealthy people, but the reality is that, as long as you have anything of value, you can benefit from asset protection. There is a range of assets that need protection. Read on to learn what types of assets you should protect, why you need asset protection, and ways of protecting those assets.
What Assets Need Protection?
There are many assets that need protection. They include the following;
- Bank accounts
- Personal property
- Business property and premises
- Business contents, such as equipment and stock
- Real estate property
- Goods in transit
- Intellectual property
- Cash and credit
- Vehicles, including commercial vehicles
Generally, asset protection is about protecting your business and personal assets.
Why Do You Need Asset Protection?
As already mentioned, you need asset protection for various reasons, such as to prevent creditors, a partner, or someone else from making a claim on your assets. If, for example, a creditor files a lawsuit against you to recover the money you owe them, you face the risk of losing assets such as your home, car, and money. Furthermore, if you are caught up in a lawsuit, it means you need to spend money on legal fees.
How Can You Protect Your Assets?
There are many ways to protect your assets. The following is a look at some of the ways you can consider;
Limited Liability Companies (LLCs)
An LLC can offer you the opportunity to protect your personal assets from business creditors. However, an LLC cannot protect your business assets from business creditors.
An offshore trust is an estate planning tool that grants a person legal jurisdiction outside of the United States of America. Putting up an offshore trust involves creating a trust in another country. Once an offshore trust is created, it protects assets from domestic creditors.
Liability insurance policies can also help you protect your assets. The following insurance policies can help you secure your assets;
- Umbrella policies
- Life insurance policies
- Malpractice policies
A life insurance policy, for example, can help you protect your assets from seizure by a creditor who has obtained a court judgment against you.
Lastly, a prenuptial agreement, which is an agreement that couples sign before marriage, can help you protect the assets you have before marriage. A prenuptial agreement can even help you protect future assets that you specify will be considered yours in the event of a divorce.
Contact Bagla Law Firm for Legal Help
If you want to know more about the assets, you should protect and how you can protect those assets, do not hesitate to contact the experienced and dedicated San Diego asset protection lawyer at Bagla Law Firm. We can help you develop an asset protection strategy best suited for your assets. You can call 760-579-6789 or fill out our online contact form to schedule a consultation.