Businessmen and professionals know how hard and how long it takes before a person can enjoy the fruits of one’s labors. This is why protection for their hard-earned assets is very important to them. People naturally want to protect their possessions or properties and ensure that they are not taken away unfairly due to unfortunate circumstances. Usually, these assets are intended to be passed onto children or loved ones and not become part of a settlement for a lawsuit or claim. When you own or run a business or company, your properties are always at risk. Maximizing knowledge on how you can protect your wealth and assets is a huge step in securing your future.
Importance of Asset Protection
Asset protection is set up to protect a company or a person’s assets from being taken unjustly in court litigation. When people sue a company, the company’s assets and money are not the only things put on the table. In large lawsuits, even the personal assets of company owners can get dragged into the settlement case. There are even individuals and lawyers who intentionally file nasty lawsuits against people with money just to see how much they will settle for.
It is a must that businessmen set up their asset protection early on to avoid cases that involve threatened litigation, erroneous judgments, and unfair trials. Remember that the absence of such protection can possibly lead to the destruction of a family legacy.
Setting asset protection up against lawsuits will prevent a plaintiff from seizing assets to fulfill an unfair court order. This is why it is very important to plan out strategies on protecting assets early on. This will protect the future of spouses and heirs in a legal way.
Businessmen are known to take out business loans to invest in their companies. In case of death, their estate will pay off their loans and other debts. Asset protection may prevent debtors and creditors from running after certain properties and assets that have already been assigned to heirs.
Asset Protection Strategies
Hiring an asset protection lawyer will help businessmen and professionals handle their assets better. There are several entities that can be used to shield assets from ownership or control such as trust funds, limited liability, corporations, and family partnerships.
Strategies and protection entities also have two categories depending on the asset’s location. Lawyers can discuss the options to their clients on how they can protect their assets in domestic territories using legal entities formed within certain states where there are favorable protection laws for debtors and defendants. For assets located in other countries or off-shore, lawyers can advise owners to use strategies applicable to the foreign legal entity and within the jurisdiction of the foreign country which the defendant’s creditors and plaintiffs cannot impugn.
The most important factor that one must remember about getting asset protection is that it should be planned ahead and as early as possible. Through asset protection, you can be rest assured that none of your properties can be seized unfairly.