Asset Protection – Only for the Rich?
You’ve probably heard the term and maybe even wondered if it would be worth looking into. But then dismissed it thinking it would be too expensive – that’s why only the rich folks do it. But asset protection is far from a rich man’s tool and probably much more affordable and important for you than you think.
Asset protection means exactly what the name infers – protecting your stuff (formally called “assets”). The value arises in many settings, but particularly those where someone suing you, or trying to collect from you, wants to take your stuff without your permission. With a little advance planning, use of some simple legal structures, and usually the help of a legal professional, you can take significant steps to prevent your stuff from disappearing without your consent.
And the cost, well that’s also something you may be surprised about. Most asset plans are in the few thousand dollar range, as opposed to the tens or hundreds of thousands. And the same structure can also be used to significantly reduce your tax liability. In many cases, the cost of setting up the asset protection structure is more than paid for by the tax savings in the first year. That means the savings from that point forward are gravy.
But the key is to put things in place BEFORE someone sues or tries to collect from you. It is possible to put things in place after a lawsuit is filed or collections actions are initiated but their effectiveness is diluted the longer you wait.
So if the thought has even crossed your mind, or if you’ve wondered about the potential problems you could avoid with a little advance asset protection planning, now’s the time to get some details. Our office would be glad to review your assets and their potential for risk along with some possible solutions. Get started today by calling (480) 888-7111 or submitting a web request here.