Protecting your assets should never be an afterthought of wealth acquisition. The way that you manage your assets and investments can be one of the key indicators of long-term wealth and the future of a legacy.
Asset protection planning is a strategic way to continually assess how your assets should be managed based on your long-term goals. The following are some things that you can start doing today to manage your assets better.
Protect yourself against claims
One of the biggest threats to a person’s assets are legal claims. Therefore, you must make sure that you are fully prepared for a claim before it happens. Once you are subject to a claim, any action that you take could be interpreted as a fraudulent transfer under the law. It’s important to have all possible protections in place before the occurrence.
Know the difference between trusts and entities
It’s important to keep personal assets in a trust, and business assets in an entity. When these assets become mixed up, your personal assets are likely to become vulnerable. Trust assets are highly protected by law; therefore, it’s vital that you keep personal assets where they cannot be touched.
Don’t leave it too late
Planning too late can make things worse. Therefore, you need to be constantly assessing your financial situation, as well as forecasting possibilities and assessing risk.
If you want to make sure that your assets are protected and start acting strategically when it comes to your personal and business wealth, you should also look into the legalities of trust funds so that you are equipped with the information that you need.
Source: Forbes, “Ten Rules For Asset Protection Planning,” accessed Feb. 07, 2018