The forming of the business entity - limited liability company (LLC)
This can be a great way to protect your assets from creditors and lawsuits. Common in real estate, creating an LLC ensures that an LLC member's investment is usually at risk but not their personal assets. This can help in the protection of your personal assets if things go south in your LLC. This doesn't mean that there is never any risk to personal assets when it comes to LLC's debts.
Effective estate planning
Estate planning is a good practice on it's own as it's important to categorize and have a plan for your Albuquerque estate but it can also help when it comes to other assets you have and want to keep safe. Potential lawsuits are everywhere, removing your large assets from reach of those possibly looking to sue can be a huge deterrent to even start the process. This includes steps like writing a will and creating trusts. Getting a local ABQ lawyer to help walk you through these necessary steps will skyrocket your chances of successful protection.
Federal law dictates that retirement accounts (like 401k's & IRA's) are protected from lawsuits, creditors and bankruptcy. Adding to these accounts as much as you can is a smart, effective, and consistent way to ensure you have a nest egg to fall back on if an unfortunate lawsuit came your way.
There are dozens of types of insurance and depending on the type of assets you hold, some may be more beneficial than others. Having liability insurance aids in the payout of damages and also usually includes the payment of legal fees involved in the lawsuit. This is your first line of defense when it comes to protecting your assets. Updating your insurance to keep up with your asset value as it grows is key.
There are many types of insurance, retirement funds, and methods of planning out there and it can get overwhelming fast. Get a local ABQ lawyer who knows the ropes, specializes in estate and asset protection, and can get your assets set up for the upmost protection. Let's chat today!