Protecting your wealth is important because you are assured of having assets that can help generate income for you and your family in the future. In the same token, asset protection ensures that you are shielded from creditor claims by limiting the creditor’s access to certain valuable assets. This tends to be done within the confines of the debtor-creditor law. As such, you won’t violate the 1984 fraudulent Transfer Act, which sets out to limit illegal practices of concealment, tax evasion, contempt, and fraudulent transfers.
That said, here is a breakdown of the top reasons as to why you should consider asset protection.
Ensure Business Continuity
Asset protection provides a great way to ensure that your business doesn’t suffer any “hitches.” Most companies whose assets aren’t insulated- in a legal manner- suffer numerous problems, especially when dealing with creditors. This is because -when the asset isn’t protected- the creditors have a genuine claim to part of your business’s assets. Put briefly, the creditors can gain access to some of the valuable assets within your business.
As a result, part or whole of your business operations may end up being halted.
Such a huge setback may affect you and your business’ reputation. However, asset protection guarantees you what you need to overcome the hurdles associated with unprotected assets in your business. This is by regulating the assets that the creditors can gain access to.
Provides a Safeguard against legal threats
It is trite law that anyone can initiate a lawsuit against another person or business owner for allegedly violating their rights. While this is true and -indeed- important, most individuals, especially customers and patients, are in the habit of filing malicious and wrongful claims against business owners and medical practitioners, respectively.
As a business owner or medical practitioner, you stand to suffer considerable losses in the event that the court orders the seizure of your assets due to the lawsuit filed against you. However, this protection provides leeway to avoid any loss if a malicious lawsuit is filed against you. Quite simply, an asset protection strategy ensures that your wealth won’t be touched during and after completing the legal process.
It protects any form of asset.
Most people are apprehensive of adopting asset protection strategies because of the misconception that it is a tool for the wealthy, which helps them avoid paying taxes.
This assertion isn’t true because all families need asset protection, whether wealthy, middle-class, or poor. Quite frankly, the class doesn’t matter when it comes to asset protection. This is because you and your family can derive more benefits from asset protection than when they aren’t protected.
How can a Membership Association Help?
To benefit fully from asset protection, you need to have the best protection strategy. Although identifying the right strategy for you or your business may not be straightforward, you can gain help from a membership association. Joining a membership association like the ProAdvocate Group might just be the first step to securing your assets.
With decades of experience in financial planning, the ProAdvocate Group has a mission to educate and support individuals like you. Contact us today to learn more about asset protection.