Do you protect your assets? If the answer is no, then it’s time to get serious about protecting what belongs to you. In this post, we will go over ways that will protect assets from lawsuits and other legal claims:
Know Your Rights
The first step in asset protection is knowing what you are entitled to and how the law will protect those things. You can find this information by consulting a lawyer or researching local laws.
Many people don’t realize that just because somebody sues them doesn’t mean they’ll get whatever it is they’re suing for. For example, if someone tries to sue you in court over an unpaid debt, even though the person may win their case, there’s still a chance that not all of the money from the lawsuit settlement will be awarded.
Put Them in Asset Protection Trust
A trust is a contract between you and the trustee. The contract protects your assets while in the trust. It’s very similar to setting up an account with someone else as a joint owner without sharing ownership rights.
The person that creates the trust can protect their businesses, real property, retirement plans, and health care benefits. They’re legal contracts where trustees are given authority over those things on behalf of beneficiaries.
Umbrella insurance is a type of liability coverage that protects against losses beyond standard home and auto policies.
This type of insurance will help protect assets if someone sues you for something outside your house or car. For example, if somebody slips on the ice at your office building then falls down the stairs to their death, umbrella insurance could protect you from all damages related to this suit since it’s not covered under typical commercial insurances.
Keep Your Assets Separate
It’s a good idea to protect assets by keeping them separate from unrelated things. If you’re trying to protect your vehicle, for example, it’s not wise to keep the car in an account with all of your other assets. That’s because if someone sues you over something unrelated to the car, they could get access to everything.
Keep Good Records
It’s important to keep good records of anything that could preserve personal assets if someone sues you. That means keeping copies of anything related to an asset, such as documents with transfer date and location, ownership titles or contracts, and receipts for goods purchased.
Get an LLC
An LLC (Limited Liability Company) is a corporation that limits shareholder responsibility to the amount invested. This protects assets because it will limit your liabilities if something goes wrong and you’re sued. For example, if someone sues over injury due to a defective product, there’s generally no risk of losing personal property or other assets.
Protect Assets From Lawsuit
There are many ways to protect assets from being taken by others. These methods range in complexity and cost, but it’s essential to protect what you have worked hard for over the years.
We hope you found these tips helpful in protecting your assets. For more interesting content, keep reading our posts.