Protect Yourself
Assets take a lifetime to accumulate but can be lost in an instant. We often see people who have worked hard all their lives lose some or all of their assets due to lawsuits, bankruptcy, creditors, family accidents, or other unfortunate circumstances. These risks are common, but that doesn’t mean they have to be yours if you take the right precautions.
The Myth, The Legend, The Protection
Asset protection aims to ensure that assets are protected against unforeseen and adverse circumstances to the extent permitted by law. Regardless of the size of your assets, it’s important to understand how and why asset protection is right for you. If you are a businessman or landlord, in debt or disadvantaged with your family, your property is automatically at risk. Asset Protection aims to protect your assets from potential threats, including ones those you may not be aware of. The truth is that almost anything and anyone can put your assets at risk, including yourself.
Consider the following two situations:
- You own a rental property and you have tenants. We’re not perfect people, so it’s not impossible for your tenants to sue you if something goes wrong, such as damage, bad infrastructure, or poor maintenance on your behalf. Lawsuits can put not only your rental property at risk, but also your personal assets. What happens if you lose a lawsuit and all your funds are taken away?
- You are about to start a business. You have obtained a loan and are ready to start your dream business. A few months after opening, a pandemic hits the economy, forcing you to lose all your customers and close your store. You cannot repay the loan, and your creditors will come after you. Creditors want your most valuable assets first, such as personal assets, bank accounts, vehicles, etc. What would you do if they seized your property to pay off the loan?
Trust the Process
Having overcome the aforementioned but very reasonable nightmare situation now is the time to think about how to reduce the risk to your assets. Assets are often associated with ownership, such as who owns the property. But what if there was a way to own property without actually having to own it? We are here to inform you that this magic formula exists! Trusts are a popular way to protect personal assets A Trust is a legal entity that can own assets. You are essentially giving up ownership of your assets and transferring them to the trust. As the grantor of the Trust, you can designate anyone as the the Trustee who takes control of the assets, including yourself. If you want to know more about asset protection, please contact our company. We are happy to put you on the right path.