subject: Differentiating between asset protection myths and facts [print this page] When you think about protecting your property, you think about protecting it from crooks and frauds. Do you have any idea about legal asset protection? Certain strategies help you to keep your personal and/or professional belongings from compensatory lawsuits or difficult to handle creditors.
Many ideas are in circulation in this regard and it is difficult to separate the facts from the myths. Here is a brief guide to understanding the difference between facts and fiction.
Myth is that you need such protection only if you are extremely wealthy. Fact is that anyone with assets, more than the cost of litigation, requires this kind of protection. You never know when misfortune may befall and you become the target of a lawsuit or become unable to repay certain debts.
Myth claims it as illegal. Fact is that asset protection is legal if your aim is honest. When you plan to protect your possessions, your objective is to keep some money aside to start anew if there is an unforeseen incident. Your lawyer can advice you in doing this the right legal way, e.g. by forming a trust, by forming a corporation, etc.
Myth is that you can get asset protection after there is a problem. Fact is that it is of no/minimum value after you are in trouble. The strategies would be of no considerable value if you plan and execute them after someone files a claim for compensation or after your creditor files a case against you.
Myth is that you can save your assets if you transfer them on to family members. Fact is the state would consider such gifts legally invalid if you become insolvent after the gifting. Moreover, if you transfer your property after the filing of a lawsuit, the court may just take it back and settle the suit.
Myth claims that any single strategy can help achieve asset protection. Fact is that it is a complex domain and no single plan can achieve complete protection for your property. You need a set of strategies to achieve desired results. Moreover, because of this you need a professional with thorough knowledge and experience in this field.
Getting a clear idea always helps, especially when it is as serious a matter as planning the protection of your belongings. Don't accept all that is said, consult a legal professional to clarify your doubts and get answers to your queries.
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Differentiating between asset protection myths and facts
