16th May 2016
Do you need an asset protection plan? If you have any risk of a claim or a thriving business attached to your name, it’s probably a good idea. Use this checklist to get it right.
Plan Before the Claim Occurs
Before a claim happens, you have many asset planning options. Afterwards, you have little chance of a worthwhile asset protection plan.
Get Professional and Liability Insurance
Your asset plan is not a substitute for insurance. Instead, it’s a supplement. Your insurance covers legal fees and even financial support for a claim payment. Your asset plan doesn’t.
Give Up Some Control
When you are too involved with your asset plan, a creditor can successfully argue that you and the protection structure are the same, which voids the plan.
Separate Business and Personal Assets
If you entangle your personal assets with you business accounts, your wealth can be on the line if the company goes down. Separate accounts are the best solution.
Don’t Rely on Off Shore Accounts
Storing your assets offshore doesn’t erase the fact that you are here. A courts can demand your bring your assets back to the states with a “repatriation order.”
Don’t Rely on Bankruptcy
Before 2005, bankruptcy was a boon for desperate debtors wanting to keep their assets and loose their debt. Post 2005, the laws target your assets as well, which can negate some elements of your asset plan.
Understand Your Asset Plan
It’s common for asset planning to become convoluted beyond the point of explanation. However, if you can’t clearly explain your plan to a judge, your plan might draw suspicion from legal parties.
When you’re ready for your next step, call Christensen Young and his offices to get started on an effective asset protection plan. With the right professional help, you can protect your assets from unexpected obstacles.