When facing a lawsuit, civil penalty, tax lien, bankruptcy, or other significant financial issue, finding ways to protect your assets is very important. If your assets are not properly protected, you could risk losing them all. To ensure that you are properly protected, there are a number of different tips that could be followed that could help you to properly protect your assets even during challenging financial situations.
Establish a Trust
One of the best ways that you can protect your assets is by establishing a trust in the name of your heirs. A revocable trust is a very common tool that is used for tax and estate planning. This type of trust can also help to protect your assets from seizure in a variety of situations as the assets will be technically not held in your name.
Place Assets Directly in Spouse’s Name
Another way to protect your assets is to place the assets in the name of your spouse. If you have a higher risk of lawsuit or other financial challenges, placing your home and other valuable assets in the name of your spouse could be a great option. If you happen to be sued, anything that is in the name of your spouse will be protected from the lawsuit and judgment.
When you are looking to protect your assets, you should also look to put as much money into your 401k or IRA as it allowable by law. Retirement accounts are often viewed differently by the various court systems and the accounts could end up being completely protected while other bank accounts may need to be liquidated.
If you are facing a challenging financial situation, you should contact us to learn more about how you can protect your assets and other services that we can provide to you.