Assets are very valuable and should be protected. Asset protection as a financial strategy enables you to operate within the confines of the law to enable you to protect your assets from creditors. In simpler terms, asset protection limits the creditor’s access to your assets even when there exists a debtor-creditor relationship.
That said, here’s what you need to know about asset protection and how joining a Private Membership Association can help you.
Understanding Asset Protection
Asset protection is a legal term that denotes insulating assets from creditors without hiding them or engaging in other illegal practices. Noteworthy is that asset protection is to be undertaken before a liability or claim occurs.
That said, some of the strategies you can use in asset protection include:
- Using Asset Protection Trusts (APTs): Essentially, this involves the use of an APT bank that holds assets at your discretion and prohibits creditors from seizing the assets.
- Using Limited Liability Company statutes: The LLC statutes envision the separation of the company and its owners as different entities. Therefore, the company’s assets can’t be used to settle the owner’s debts. In the same vein, the creditors can only pursue a lawsuit against you in your personal capacity.
- Using individual retirement funds: This strategy provides maximum protection against creditors. Here you can store bonds, stocks and any other investment.
How can a Private Membership Association Help You?
Joining a private Membership Association is a key step towards protecting your assets from creditors and risks such as lawsuits. Essentially, a membership association such as the ProAdocate group advises members on the best strategy to implement towards effective asset protection.
What’smore, a private Membership Association such as a ProAdvocate group has over 41 years of experience dealing with issues to do with asset protection. Therefore, they are more than capable to guide you through the process.
Needing a foolproof asset protection strategy? Contact us >today to learn more.