The fact that you’ve worked hard to put your name on something doesn’t necessarily mean it’s yours for good. In the eyes of the law, there are many valid ways for other people to claim your intellectual, estate, trust, realty and other assets as their own. Asset protection plays a critical role in keeping your holdings in the right hands.
Understanding the Risks of Property Ownership
Assets may be seized by courts or awarded to third parties for any number of reasons. For instance, creditors could initiate legal actions against you and collect on your trusts, or consumers who patronized your business might decide to sue you on liability grounds and pursue damages following an accident. A sound asset-protection strategy helps you prepare for such eventualities and respond appropriately should they occur.
True, business owners, professionals and private citizens benefit from the right to a fair trial in divorces, liability matters and similar cases. Nonetheless, the ever-increasing prevalence of frivolous lawsuits and changing rules concerning taxation, alimony and employment make it imperative to prepare your defenses in advance.
What Is Asset Protection?
No property-holding strategy is ironclad. By taking advantage of state and federal laws, however, you may be able to realize a more stable situation.
States like Texas permit certain assets to be exempted from creditor claims in bankruptcy filings. Federal laws provide for industry-standard insurance rules and policy coverages that could keep liability awards from compromising your investment portfolio or other properties. There are even ways to shield assets by placing them in certain types of investment structures and offshore holdings.
What Kind of Asset Protection Is Right for Me?
Assets come in many forms, and the laws that pertain to them are just as diverse. As such, there’s no such thing as a one-size-fits-all solution. Each investor or property holder must adopt a unique strategy that suits their needs.
Consulting with an expert is usually the smartest way to begin safeguarding the material possessions you’ve fought to accumulate. By taking account of your holdings and the potential risks that could jeopardize them, our firm can craft a custom asset-protection plan that works. Learn more by requesting a consultation, or contact us with your questions about an ongoing matter now.
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