In a very litigious society such as the United States, the evolution of Asset Protection into a specialized and highly publicized area of legal practice is not entirely surprising. Short on accountability and long on victimization, our legal system has seen and continues to deal with a flurry of lawsuits – frivolous and scheming – with the perverse motive of getting financial gains from the other party through legal trial.
Why Do You Need Asset Protection?
Without anything to lose, plaintiffs are emboldened to get the other party in a trial in a bid to get them to pay claims. Many of these lawsuits get a lot of media hype further fuelling the interest of others. It seems anyone can file a lawsuit against any party whom they think has the ability to pay.
It is estimated that civil justice in the US runs in the billions a year. Our complicated legal system has made civil litigation a lucrative business at the expense of employers, business owners, and professionals. Asset protection specialists at CS&P emphasize that everyone, even the middle-class workers, is at risk of legal liabilities which makes asset protection vital.
With Asset Protection planning, you can legally defend and safeguard your hard-earned wealth against frivolous lawsuits that may come your way.
Who Needs Asset Protection?
One of the biggest misconceptions about asset protection is that it is a way for the affluent class to further stock up their wealth and to further enrich themselves. But it’s not the real purpose of asset protection. It is safeguarding your asset from potential legal claims.
Quite obviously, the very rich benefit the most from such financial services; hence, they are more likely to avail it. But that doesn’t mean asset protection is exclusive to them.
Anyone can be held liable for numerous reasons. There is always the risk of liability when you operate a business, enter into a failed investment deal, practice your profession, declare bankruptcy, be subject to a civil lawsuit, and even while driving. That’s a reality of living in a very litigious society.
Safeguarding your wealth through asset protection is important even for the middle class to ensure financial security and to guarantee that you enjoy your hard-earned wealth or that it may be passed down to your loved ones.
Do You Need To Think About Asset Protection?
So, should you set up an asset protection plan? If you find yourself in any of the circumstances listed below, then you should seriously consider setting up asset protection strategies.
- If you practice a profession with high liability risk (example, accountant, doctors, engineers, lawyers, and other similar professions)
- If you’ve accumulated substantial equity in investments, savings or real property that you want to protect
- If you’ve built up a portfolio of assets that is beyond the estate tax cap
- If you’re unsure about how your beneficiaries will manage an inheritance
- If you’re a business owner (there are numerous risks involved in running a business)
- If you’re aging and want to secure retirement savings
- If you’ve been diagnosed with a serious medical condition
There are numerous ways of protecting your wealth such as using business entities, maintaining liability insurance, appointing trustees, and many more. The strategies and solutions you can employ depending on your situation. With the help of an asset protection specialist, you can take the proper steps and employ appropriate strategies to safeguard your assets from damaging legal claims.
Final Thoughts On Asset Protection
Think about asset protection as “an ounce of prevention” that is so “worth a pound of cure.” Securing your assets is one of the best things you can do for your loved ones and yourself. Never delay making wealth protection plan as you never know when a disaster could strike or a risk could arise. Hopefully, these unwanted risks won’t come knocking at your door to test your asset protection plan. But even if they do, you’ll certainly be thankful that you have invested in a plan. Asset protection should give you a peace of mind knowing that your assets are secure and safe.
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