Asset Protection Rights

Your Right to Protect Your Assets
Asset protection is to do with protecting your assets. It is a process by which you set up a plan that will structure your business and personal affairs in such a way that your assets are protected from the grasp of people who may want to get their hands on it for various reasons.

Asset protection is legal and ethical and it has nothing to do with hiding your assets but everything to do with structuring your affairs so that your assets are kept outside of the potential reach of those who may try to take them. It is a sophisticated method of business planning using lawful estate planning strategies.

An analogy is that if insurance. You take out an insurance policy to protect yourself against any financial losses should a disaster occur. There is a cost involved, but you are prepared to pay that cost in the hope that you will be able to recover your position should a disaster strike.

Asset protection is similar in many ways. No one can see into the future. You do not know when a crisis will occur or when disaster strikes. If such a crisis or disaster happens then there is the possibility that you could lose your assets. For example, if your business fails. You may suffer this failure through no fault of your own but nevertheless you are put into a situation of leaving your personal assets at risk.

Your business creditors may try to bring action to recover any money owing to them from your own assets. It is wise to put in place strategies well before such an event occurs to protect those assets. That is what asset protection is all about. Setting up a plan that is legal but designed to protect you from potential, future problems.

Don't Delay Your Protection Plan
Asset protection should be something that you need to discuss very seriously with your professional advisers at the earliest. It is possible that much can be done to protect your assets without a lot of fuss and with minimal cost. It is important that you see your advisers before you put in place any type of protection plan.

Like most things that create or protect your wealth, the longer you delay the more potential loss you could suffer. The main reason why you shouldn't delay is to do with risk. There is the risk that you could die at any time and leave your affairs and your assets in a state that they are unable to be protected fully or distributed in the manner that you would have wished. Sometimes the older you become the less opportunity you will have to protect your assets through the legal avenues that are available to you.

Protection Suggestions which are your rights
Here are a few suggestions when setting up a protection plan which is your right:

  • Split your assets. It may be a sound arrangement to split your business assets in such a way so that they are owned by more than one entity.
  • Do not take risks. If you are in business try to run a sound operation that does not involve you taking unnecessary risk.
  • Keep it in writing. Make sure that you have all receipts and documentation available for all transactions so that you can verify your situation in a legal fight.
  • Keep away from partnerships. Being in a partnership is a high risk option. If you are in a partnership your liability is a joint one which means that you are liable for the actions of your partners, even if you had no knowledge of those actions.
  • Structure your business. Make sure that the structure that you run your business under is the most secure. E.g. using a limited liability company.
  • Keep away from the courts. As much as possible, avoid going to court. Try and mediate or negotiate a solution with the other party if there is a dispute.