Classic “asset protection” is the concept of protecting your personal assets from lawsuits. Lawsuits that are most typical are “negligence” suits. A negligence lawsuit can arise when someone does something (intentionally or inadvertently) that causes harm to a third party or their property.
What can cause negligence lawsuits?
- Cell phones—texting and driving is more dangerous than drinking and driving.
- Property ownership—if you own a home, vacation condo, rental property, etc., you have premises liability issues.
- Professional liability—if you are a doctor, lawyer, CPA/EA/accountant, architect, etc., you have “personal liability” that can’t be shielded through the use of a corporate entity.
To review a series of detailed examples which illustrate why everyone needs asset protection from negligence lawsuits, click here.
What assets should be protected from negligence lawsuits?
Anything of value (brokerage accounts, vacation homes/condos, rental properties, etc.). Assets titled in your own name are at risk to lawsuits!
Limited Liability Companies (LLCs)
The bread and butter assets protection tool to help people protect their wealth is an LLC. Once your assets are owned by a properly set up LLC, creditors will not be able to get their hands on these assets.
To learn much more about LLCs and why they are such great tools when it comes to protecting your assets, click here.
Do you need an asset protection check-up?
To determine if you need an asset protection check-up, click here.