Protecting your assets is a sub-set of business and estate planning. All estate plans should integrate a protection plan to maintain custody of your assets when unforeseen situations arise in the future. It is essential to work with the right legal team to help you properly organize assets and safeguard them against potential risks they may otherwise be subject to. These items generally include materials such as rental or real estate properties, commercial properties, business materials such as tools and equipment, motor vehicles, individually owned bank accounts, stocks and bonds, and many more items. Although there are many potential risks, this article addresses three common situations where protection is needed.
3 common areas of asset protection
1. Protecting assets from a lawsuit. One of the most concerning areas for a business or a company owner is what they should do if they ever get sued by an individual.
2. Protecting your income from being overly taxed. A common concern is if all tax deductions are being used in the correct way that your company is legally eligible for.
3. Finally, how are you going to protect your retirement funds from market risks and the potential ups and downs that can come from running a business?
Understanding assets protection strategies
It is vital that companies work with professional entities that have tried and tested strategies when it comes to asset protection and estate planning. Although there is no such thing as a one-size-fits-all approach, there are common strategies that can be discussed with a legal professional. This includes creating elaborate barriers that add layers of protection against opposi8ng parties that may be looking to pursue them as part of legal action. This can mean planning your assets in a business entity, maintaining the right insurance plans for your needs, and placing funds in trust accounts.
It is always a good idea to prepare for the worst while things are going well. By creating and implementing an asset protection strategy early you can ensure that plans are properly implemented and executed. If you live or run a business in Utah, California, New York, Florida or Tennessee consider calling the professionals at Bowen Law Professional Group to speak with a legal professional and learn more about what we can do for you.