All That You Need to Know About Asset Protection Planning

Asset protection can mean different things to different people, especially when the understanding of 'asset' as a term is very specific to the need of individuals. For some, it could be about protecting all the assets that you have while for the others, it might involve the strategies to focus more on estate/property planning.

To make things clear for you, let us explain the term 'asset protection' in more detail. The term clearly indicates a legitimate process of protecting assets and keeping them at par distance from any sort of legal threat. It is the process of keeping your property and investment protected from the dangers of being taken by some party or individuals who could file or win a lawsuit against your property or belongings. Unlike the popular belief that stereotypes asset protection as the domain of rich people, the term reflects a systematic approach for everyone who holds awareness for their belongings. From a minimal car accident to a retirement plan, saving account, personal property or a high profile business lawsuit, asset protection covers each and everything that might trigger a financial trouble to you.

What we need to understand about asset protection planning?

The economical scenario of our times is a highly unstable one- nothing less than a 'big' challenge in it self! In such a situation, it is significant for everyone to understand the importance of planning asset protection and create a plan that works absolutely well according to your financial situation. Keeping the entire communication in mind, we have compiled a quick list of 5 rules that you need to know about the process of protecting assets.

Asset protection should be taken as a proactive approach where someone who is responsible of managing assets should take care of the assets before a lawsuit (or any sort of legal action) is filed against the person. Protect your assets before it's too late to regret.

Choose an asset protection plan that could supplement your insurance plans, and in fact vice versa. For instance, if someone is planning to sue you against your assets, then make sure to guard your property with the mighty walls of insurance.

Have a clear understand about different types of assets and never mistake one with the other, especially when you are involved with both personal and business forms of asset. Corporate, partnership, LLCs, investments, personal accounting and so on- try learn the difference between all of them.

There is a mighty difference between asset protection planning and tax or estate protection. Discuss the difference in both the concepts with your asset protection attorney and learn some amazing facts about fraudulent transfers.

Unlike what people have to say about it, asset protection shouldn't be your biggest secret and in fact, there is no secrecy involved in the process. Respect it as a financial plan which holds the power to take you out of a crisis situation. And as far as your attorney is concerned, you cannot afford to hide any secret details about your assets from them.

Thomas E Greene Photo Liberty Street Advisory Group is asset protection attorney refers to the separate entities, Liberty Street Law, Liberty Street Capital and Trust & Estate Stewards. None of these entities or persons furnish actuarial, accounting or comprehensive tax advice. Liberty Street Capital, is a limited liability company registered as an investment advisor in Georgia and other locations. Trust & Estate Stewards is a limited liability company. Past results are not a guarantee of future performance.