People protect what is theirs. That is why insurance for your car, home, and life exists. But for something intangible such as your wealth and assets, you need increased protection, aside from insurance. People call it asset protection.
Better asset security or protection means more secured wealth. But for you to know what is better, you must first understand the whole concept of the strategy.
What is asset protection?
To explain simply, asset protection is the concept of protecting one’s assets from creditor claims without stepping over the boundaries of the debtor-creditor law. This means that you can and should protect your assets without illegally concealing them, through tax evasion, or fraudulent transfers, among others.
Investors and businesses employ this technique to protect themselves and their assets from unforeseen lawsuits that will greatly affect their businesses. However, it is important to know that asset protection is different from insurance.
You should not skip the latter in favor of the former as these two things have different functions and should work side by side.
How can you thoroughly protect your assets?
The best way to protect one’s assets is to start as early as possible. Even without the threat of claims or lawsuits, you must make sure that you protect your assets well through early asset protection planning. There is no better way to do this than choosing the right lawyer for the job.
Invest in your asset protection. After all, prevention is better than cure. Aside from starting early, it is important to draw a line between personal and business assets. Do not put one on the other in hopes of better protecting your personal assets or vice-versa.
There are ways to protect your personal assets, like trusts, without touching your business side.
Do you have asset protection? If not, maybe it is time to start now. People, no matter how rich or poor, are susceptible to attacks. Make sure you have your bases covered.