Estate planning and asset protection go together hand in hand. If you don’t have a solid asset protection strategy in place, there’s a chance some or all of your assets could be at risk in the future – and that’s not a risk you want to take.
While there are many risks you can hedge against with the proper asset protection strategy, here are some of the most common:
- Disability or incapacity: For example, if you suffer a serious injury, it could impact your finances in a variety of ways. Maybe you need long-term care at home. Or maybe you need to move to a nursing facility. Either way, your assets are at risk.
- Lawsuit: You hope that you never get caught up in a lawsuit, but there’s always a risk of this happening. For instance, someone could suffer an injury when visiting your home, which results in a lawsuit against you. If you’re not fully covered by your home insurance policy, the plaintiff could attempt to collect by coming after your personal assets.
- Business difficulties: As a business owner, you hope that everything always goes as planned. But when it comes to your company’s finances, you never know what the future will bring. It’s imperative to structure your business in a way that protects your personal assets. For example, you could create an LLC to keep your business and personal assets separate.
As you create and/or review your estate plan, pay close attention to what you can do from an asset protection point of view. You may come to find that there are some key changes you can make to improve your situation and provide peace of mind.
If you have questions about asset protection or related details, don’t wait to contact us. We’ll help you create the right strategy, which will put your mind at ease.