What is asset protection and how do you know if you need it?
Lawsuits do not wait for convenience. A motor vehicle accident, credit card debt, bank foreclosures, bankruptcy and other situations can lead to a lawsuit that can make your finances and assets vulnerable to creditors. While a lawsuit can sometimes be unavoidable, you can potentially protect your assets from seizure by including asset protection in your financial plan.
What is asset protection?
Asset protection is a strategy for protecting your wealth and assets from creditors in the event of a lawsuit or other claims. It limits creditors’ access to your assets to help prevent you from losing everything in the event of a lawsuit or claim.
Is asset protection legal?
Yes. Under an asset protection plan, your assets are arranged in a legal manner to help protect them from vulnerability to creditors. An asset plan is not the same as concealment, contempt, fraudulent transfer, tax evasion or other illegal means of hiding or moving your assets.
How do you know if you need asset protection?
In short, anyone with property, nonliquid assets or liquid assets can benefit from an asset protection plan. While an asset protection plan is especially beneficial for the wealthy who have a lot of assets to lose, it is also beneficial for the average middle-class family. Anyone can get sued, so it is important to make sure that you and your family are safe from losing everything if a lawsuit or claim does not go the way you would like.
It is also important to note that you must have an asset protection plan set up before you are sued. If you are sued and scramble to protect your assets afterward, you may be viewed as attempting to defraud creditors.
If you are considering setting up an asset protection plan and you are not currently involved in a lawsuit, then now is the time to do it.
Talk to a ProVise CFP® professional about setting up an asset plan
In “The Office,” Michael Scott boldly states that he “has bankruptcy” to which other characters are quick to point out that that is not how it works, despite his persistence that “I didn’t say it; I declared it.” It is kind of similar with your asset protection planning. You cannot simply state that this asset or that asset is safe from creditors. You need to go through the right channels. Our CERTIFIED FINANCIAL PLANNER™ professionals at ProVise Management Group can work closely with you and your attorney to create an asset protection plan that keeps you safe from losing everything to creditors.
When creating a plan, we get to know you and your current financial circumstances, goals, risk tolerance and personal values. We can create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about protecting your assets from creditors? Contact ProVise today to schedule a complimentary consultation.