Asset protection is an invaluable move to secure wealth and property for people who have amassed substantial wealth. Asset protection cushions your wealth and property from risks such as lawsuits, economic downturns and creditors. Implementing an asset protection plan requires legal guidance from a qualified attorney with a specialty in asset protection.
3 Strategies You Can Use in Asset Protection
- Using Asset Protection Trusts (APTs)
APT is a type of trust bank that holds assets at the discretion of the person investing in the trust, usually called the settlor, to protect the assets against creditors. Legally, assets that form part of ATP are not entitled to their owners, who assume beneficiaries with equitable interest in the asset. The dynamics of the APT strategy ensures that your assets are protected from creditors without going against tax evasion laws.
APTS is considered the best strategy to protect assets from risk and lawsuits. The best trusts are formed offshore to make them capable of working even after a lawsuit is filed. However, forming APT will require that you give up the legal ownership power, and it is always irreversible once in effect.
- Use LLCs
LLC statutes have provisions that prohibit a creditor from seizing the company or its assets. LLCs statute ensures that a company and its owners are separate entities, and the companies’ assets can not be used to settle debts of the owner. Your assets transferred to an LLC keeps them safe from the grasp of creditors or lawsuits against you personally.
- Individual Retirement Funds
Using individual retirement funds does more than protect your assets; they also come with incredible tax benefits. WIth IRA, you can store bonds, stocks, mutual funds and other investments in addition to cash. Making a maximum contribution to an IRA will not only protect your assets but will also maximise your tax benefits and assist in retirement planning as well.
Where Can You Get Help?
Joining a membership association will prove to be a massive step towards learning how best to implement an effective asset protection strategy. Membership association helps you know the intricacies of the legal framework involved in asset protection.
ProAdvocate group is a membership association capable of walking you through the entire process of asset protection. With experience spanning 41 years, you can be sure of a foolproof asset protection strategy and process. Contact us today to learn more and begin your asset protection journey.