Anyone who owns something, irrespective of the amount of wealth, should seriously consider asset protection. If you count on solely on bankruptcy, you may discover that this process hardly protects most of the assets you wish to safeguard, especially with the new provisions in the bankruptcy code. If you rely just on your liability insurance, you might still lose everything you have with your policy’s inconvenient limitations.
Unless you want to gamble and pray that the fruits of your labor would never be at risk in a lawsuit, you ought to use effective asset protection tools to keep your pocket shallow for any creditor to reach. But it shouldn’t just be any plan; it must have the right set of qualities to ensure it wouldn’t backfire on you down the road.
Any expert in asset protection in Salt Lake City, Milwaukee or any American city knows these characteristics are non-negotiable:
If you can’t wrap your head around your asset protection structure, it would most likely go to work against you. Simplicity is the key because, if questioned, you must be capable of clearly explaining the transfers to the authority. If it’s too complicated, then the higher the chances it may be considered fraud by the judges.
A good asset protection plan only denies access to creditors, but never hides anything. Any practice of concealment may be deemed fraudulent. Besides, the truth would come up one way or another, so there’s no good reason to embrace secrecy. In essence, not making a truth disclosure about your assets and transfers create more problems than solutions.
Any asset protection strategy is no silver bullet to all collection threats. All tools have limitations and drawbacks as well, which is why you should never forget about your liability insurance and estate planning. If you keep the two in mind, you have a better chance to protect your assets 100% while possibly eliminating all of its repercussions.
It’s impossible to plan an ironclad asset protection strategy without an experienced attorney. Hire a lawyer that specializes in this field to help you weave through this often tricky process.