There are many possible threats to a person’s assets, with the specific dangers varying depending upon things like the age of the individual and what form the assets take. Business owners, for example, do not face the same threats to their wealth as people who earn standard wage income or people who own family farms.
You should work with an experienced attorney to find specific asset protection strategies that target the issues most likely to affect you. Five key asset protection strategies that your attorney may discuss with you, depending upon your personal situation, include:
- Forming business entities: If you own your own company, forming a separate entity should be on the top of your list of asset protection strategies. If your company is not a corporation, Limited Liability Company (LLC), or other separate entity, you face the risk of personal liability if something goes wrong with the business. Even if you do not own a corporation, however, business entities can sometimes be useful for asset protection. For example, some people form family limited partnerships to be able to transfer ownership but not control over assets during their lifetimes so they can reduce or avoid estate tax.
- Purchasing insurance policies: You must have sufficient coverage to protect against the loss of wealth. If someone sues you after a slip and fall at your home, an auto accident you cause, or any other type of accident that you cause to occur, you want your insurer to pay for the losses. You also may need life insurance to provide for your family if something happens to you.
- Investing in protected assets: There are certain special types of assets which get different treatment under the law. For example, homestead exemptions can sometimes provide special protections for primary homes.
- Strategic titling: In some cases, one person in a family is more at risk than others. For example, if you are a doctor, you could be in jeopardy of a malpractice lawsuit. If you face a higher risk of a lawsuit or claims against you and you do not want to put your property at risk, you can make sure it is titled in the name of a close family member like a spouse. You should be careful about putting the title into another person’s name unless you trust them completely, and should be aware this could have estate tax implications if the title is in anyone’s name other than your spouse.
- Trusts: Different kinds of trusts can help to protect against many possible threats to your assets. An experienced attorney can help you to identify what kind of trust is best to accomplish your asset protection goals.
These are just a few of the asset protection strategies that Sinclair Prosser Gasior can help you to use to reduce the risk of asset loss.
Sinclair Prosser Gasior can provide comprehensive assistance with asset protection to ensure you keep you wealth safe and secure. You work too hard to lose your savings if life doesn’t work out the way you are expecting. Talk with an Annapolis attorney today about the asset protection strategies that can work to keep your assets safe.