Asset protection is one of the key steps you need to take when making financial plans. No matter how hard you work for your money, you are not financially secure unless you have made plans to protect your wealth and property. Life can turn on a dime because of tragedies, leaving you without all you have worked for.
Kinghorn Law can help to make sure this does not happen. Our legal team will work with you to identify the most likely sources of loss you face and will guide you through the process of protecting your assets so your wealth and legacy are secure. Give us a call at (520) 529-4000 today to talk with a Tucson asset protection lawyer about creating your personalized plan and to get answers to questions you have about asset protection including:
- Why is asset protection important?
- What is involved in protecting assets?
- How can Tucson asset protection lawyer help me?
Why is Asset Protection Important?
Life is full of the potential for loss, and no one lives their whole life with perfect luck. When you work hard to earn a nest egg, you should not count on fate to keep your wealth safe. Just as you made smart and strategic decisions in building your wealth, you must also make smart and strategic decisions in protecting it.
The specific risks that are most likely to lead to loss are going to vary depending upon the specifics of your career, health, personal situation, and family. Some of the most common possible sources of loss could include:
- Being sued. You could be sued because someone hurts themselves on your property; because you or your kids get into a car accident; because your dog bites someone; or for a variety of other reasons. If you lose a judgement that exceeds the value of your insurance policy covering the liability for that specific loss, your personal assets are in jeopardy if the plaintiff comes after you to collect.
- Business problems. If you own your own business and the company isn’t structured to shield you from liability, you could face substantial personal financial risks due to issues with your business organization. You could find yourself personally on the hook for company debt, lawsuits against your company, and bad decisions made by co-owners.
- Incapacity or disability. A disabling condition, including both illnesses and injuries, could shatter your financial security in many ways. Your assets could be left unmanaged and you could face high costs of nursing home care that quickly deplete your nest egg.
- Losses after death: You don’t just want to preserve your wealth during your life. You also want it to be there to provide for your loved ones after you are gone. Unfortunately, estate tax, irresponsible heirs, and a host of other potential problems could arise during and after the process of transferring assets to new owners after you have passed away.
These are some of the most likely sources of potential losses, but you may also have other risks that arise due to your personal situation. A Tucson asset protection lawyer can carefully review with you the potential risks you face and can provide you with guidance in securing your assets.
What is Involved in Protecting Assets?
Protecting your assets involves using legal tools designed to shield you from losses. Some of the different options that are worth considering could include:
- Incorporating your business or forming a limited liability company (LLC): Both options would limit losses to the amount of money you have personally invested in a business, unless you fail to follow the rules for maintaining the separate identity of a corporation or for acting within the scope of your business authority.
- Trusts: Trusts are a versatile asset protection tool that can be used to protect against everything from estate tax to a delay in assets transferring that causes mismanagement and reduces asset value. Trusts can also help you to qualify for Medicaid without having to give up the financial resources that normally make you ineligible for Medicaid coverage. This is important since you may be unable to get anyone to pay for nursing home care other than Medicaid. If you need nursing home care, no one will pay, and you don’t have Medicaid, you would be forced to pay out of pocket.
- Buying insurance coverage. An asset protection lawyer can help you to make certain you are fully insured.
These are just a few of the many tools used for asset protection. You need someone who knows how to choose the right approach and put together a comprehensive, detailed plan aimed at protecting the maximum value of your wealth.
How can a Tucson Asset Protection Lawyer Help Me?
A Tucson asset protection lawyer can provide assistance with asset protection so you can be confident of your financial security when you have worked hard to grow your assets. Let Kinghorn Law help you to keep your wealth safe for yourself and future generations. Give us a call at (520) 529-4000 or contact us online to find out more.