subject: Tips to keep your assets protected [print this page] Tips to keep your assets protected Tips to keep your assets protected
When it comes to keeping your property out of harm's way, nothing works like proper planning. Whether you have real estate property or liquid assets, you need to plan to keep them from potential creditors/litigants. Just transferring your assets to your spouse or setting up a Swiss bank account would be of no use in certain circumstances.
Before you plan asset protection with the help of an experienced attorney, here are a few tips that may come in handy in this regard.
The Do's and the Don'ts
Do get advice only from a qualified and certified attorney working in this field. Don't be fooled with glossy ads, choose a legal professional based on their knowledge and experience. It is even better if you can find such a professional in your city.
Do get insurance a liability claim can exceed the coverage; however, this does not mean that you would not opt for it. Insurance is necessary, even when you have a good protection plan for your property.
Do know the state laws and if you are unable to do so, get an asset protection attorney who does. Every state has varied laws in this regard and it is better to know beforehand; or your plans could be interpreted as fraudulent.
Don't show off and if you cannot, at least try to maintain a low profile. If it is evident that you have adequate wealth to pay off litigants, the risks of being sued increase manifold.
Don't choose general partnerships in these business structures, the liability of another partner may lead you to trouble. You become the target of potential creditors/litigants of all your partners.
Don't mix assets especially the ones that may generate liability. So, if you own a department store, don't keep your rental properties in your name. Opt for separate corporate entities for each.
Don't ignore a creditor/litigant if there is a claim against you, get in touch with an attorney immediately. He/she needs to work in your behalf to ensure the easy resolution of the case before the situation goes beyond control.
Asset protection is a specific arena involving different laws. These include business laws, finance laws, tax laws, estate planning laws, and so on. It is possible to get adequate protection for your property with the help of an attorney. Whether you choose domestic or international techniques, the plan requires being good enough to be effective.
