What is Asset Protection?
What is asset protection planning and why do it?
Asset protection planning is undertaken to protect your assets from being lost to creditors. Financial reversals can happen as a result of divorce or accident or many other reasons. Insurance is may be available as your first line of defense, but in many instances, the the loss exceeds available coverage.
When should asset protection planning be done?
Asset protection planning should be done before the accident or before you are facing any other financial difficulties.
What are some of the ways in which assets can be protected?
Asset protection planning can take many forms. In the business context, the form of the business entity can be an effective asset protection device. Effective estate planning can result in asset protection. Last, but not least are state law exemptions which protect certain assets or an amount of equity in those assets. Retirement funds and certain pensions are either already subject to protection from creditors or can be made so. Thus, to the extent that you can legally add funds to your retirement accounts, you are better protected from creditor attacks than if the money were in a bank account.
Asset protection planning should be considered in every situation. It is a question of balancing the planning pain versus the benefits of such planning.
Asset protection planning is undertaken to protect your assets from being lost to creditors. Financial reversals can happen as a result of divorce or accident or many other reasons. Insurance is may be available as your first line of defense, but in many instances, the the loss exceeds available coverage.
When should asset protection planning be done?
Asset protection planning should be done before the accident or before you are facing any other financial difficulties.
What are some of the ways in which assets can be protected?
Asset protection planning can take many forms. In the business context, the form of the business entity can be an effective asset protection device. Effective estate planning can result in asset protection. Last, but not least are state law exemptions which protect certain assets or an amount of equity in those assets. Retirement funds and certain pensions are either already subject to protection from creditors or can be made so. Thus, to the extent that you can legally add funds to your retirement accounts, you are better protected from creditor attacks than if the money were in a bank account.
Asset protection planning should be considered in every situation. It is a question of balancing the planning pain versus the benefits of such planning.