Creating an asset protection strategy may be the best thing you ever do. This one step could be just what you need in order to avoid a serious situation down the road.
But here is the million dollar question: which asset protection strategy is best for you? While there are many ways to move forward with this, you need to focus on the details that will put you in the best position to succeed.
While not always the case, many people who are interested in asset protection strategies are business owners. We discuss this on our website, noting the following:
“More so today than ever before, Americans are realizing the benefits of starting their own business. With this in mind, a growing number of people are entrenched in the business planning process. By making the right decisions now, it is easier to ensure success today as well as in the future.”
What Strategy is Best?
When it comes time to choose an asset protection strategy, you need to become familiar with all your options. This is the only way to guarantee that you make the right decisions at the right time.
Here are several ideas to consider:
- Buy sell agreement. With a buy sell agreement in place, there are a variety of tax advantages available to your family business.
Even more important is the fact that you have a better way of ensuring that your children are provided for once you have passed on.
- Family limited partnership. Although this sounds complicated, it is anything but that. With a family limited partnership, you gain protection from lawsuits. Along with this, it can help you reach many of your estate planning goals.
Creating a family limited partnership can be tedious and time consuming, so make sure you know what you are doing every step of the way.
- Lawsuit and asset protection. Unfortunately, lawsuits are all too common in today’s day and age. This is why you need to protect your company at all times. If you neglect to do so, there is always the chance that a predator could file a lawsuit in an attempt to capitalize on your wealth.
But here is the good thing: there are many strategies to help protect your money in the event of a lawsuit.
- Limited liability company. Also known as an LLC, this company structure allows you to receive liability protection along with a variety of tax advantages.
This is not the right structure for every business, but it’s an idea to consider. With this in place, you receive a high level of personal protection if a lawsuit is filed against your company.
One or More Strategy?
With so many asset protection strategies to consider, at some point you need to make a decision as to which one is best for you and your finances.
While some people choose one of these strategies, others realize that they can implement several in order to reach their goals.
There is no right or wrong way to protect your assets. The best thing you can do is compare the pros and cons of each strategy, and then make a decision based on what you think is best.
What matters most is that you are confident in the strategy you employ.
If you still have questions about asset protection, as well as other estate planning details, we are here to help. For example, you can learn more by downloading our free report entitled “Dangers of Do-It-Yourself Wills and Living Trusts.”
With this in hand, you will have a better idea of the risks associated with do-it-yourself estate planning. On the surface, this often appears to be a good idea. But soon enough, you realize that it can cause more harm than good.
When it comes to estate planning, there is nothing more important than knowing what’s available to you. This means answering questions related to everything from asset protection to wills and trusts.
It’s not always easy to implement an asset protection strategy, but once you have this in place you will feel much better about the future. There is nothing better than the feeling of being protected.
- Neither Age Nor Health Determines Whether You Need an Estate Plan - January 19, 2022
- Tax Planning for 2022 - January 12, 2022
- The Questions of Estate Planning, Part 6: Why - January 6, 2020