Fast Answers to Great Questions about Asset Protection

Asset Protection Basics

Tell us why asset protection is so important?

We live in a law-suit crazy, financially risky world; one where people unexpectedly lose their assets. More families, individuals and businesses get sued or go bankrupt each year. It can happen to anyone! That’s why so many people today are anxious to protect their wealth; they seek financial security and want peace of mind!

Isn’t asset protection only for the wealthy?

Absolutely not! It’s true that America’s wealthiest families were traditionally deep pocket defendants who were most concerned about shielding their wealth. The social elites of past eras sheltered their massive wealth with trusts, family corporations and other protective entities which privatized or lawsuit-proofed their properties; however, they seldom referred to their financial strategy as ‘asset protection’. But the super-rich are no longer the only lawsuit targets – Americans with any assets now need protection!

Become knowledgeable! To some extent, you must take your own counsel. Understand the fundamentals of asset protection as you master the basics of investing or tax planning. If you’re somewhat knowledgeable, you can better measure a prospective asset protection lawyer’s competence. Please visit GarrettPress.com to check out more publications on asset protection!

Protecting the Family Home

Many Americans consider their home their most valuable and vulnerable asset. Certainly, it’s the one asset for which they have the most concern when they are sued because they are most emotionally attached to their home. The home is also vulnerable to lawsuits because it’s usually titled personally to their owners. Personal ownership may be necessary for conventional home financing and to claim the federal capital gains tax benefits, homestead protection, and real estate tax abatements available to seniors.

Protecting Non-Residential Real Estate

No. The strategies to protect your vacation home and investment real estate follow somewhat different strategies than one would use to protect their home. We use different strategies for the home because we want to preserve the home’s tax benefits. You also want to keep your homestead protection. However, homestead protection and the homeowner’s tax benefits don’t extend to other real property. We then have different protective options for  non-residential real estate properties that can pose different threats and liabilities than your home.

Protecting your Retirement Accounts

We must divide retirement plans into ERISA-qualified and non-qualified. ERISA qualified plans are retirement accounts under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA pension or profit sharing plans are spendthrift trusts. Their beneficiary cannot gift, anticipate or encumber the plan’s principal or income. Non-qualified plans include IRA’s, Roth IRA’s and SEP IRA’s.

Protecting your Assets in Other Situations

Bankruptcy, divorce, foreclosures, and other actions and seizures all exemplify potential dangers to one’s health. Each possibility demands its own wealth protection strategy. The financial professionals protect the clients and we protect the clients from threats.

YES, YOU CAN LOSE EVERYTHING!