Can You Give Me an Overview of Asset Protection?
What is Asset Protection and why is it so important?
Asset Protection is the process of protecting your assets from future potential creditors.
We live in a lawsuit 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!
Is the litigation issue in America as out of control as experts say?
In today's world, not only the rich and famous are getting sued, so do thousands of ordinary folks who had only hoped to build some financial security for themselves and their families. Unfortunately, it can take only one lawsuit to cause a financial disaster. To date, there are over 100 million lawsuits filed each year, which means you have a one in four chance that you will be sued in the next year. And this doesn't include all the other potential threats.
Is 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 is no longer the only lawsuit target — Americans with any assets now need protection!
A lot of people might question whether it is legal to shield their assets against lawsuits and creditors. Can you comment on this?
It's not only legal, but essential! Yes, there can be that troublesome grey area that separates legal from illegal asset protection planning, but you can't cross that line. Many journals and articles openly discuss and recommend asset protection such as the American Bar Association, who has formed an asset protection subcommittee. We might explain the legitimacy of asset protection as the intelligent application of many statutory and common law tools to best shield one's wealth. We didn't create these tools, we only show clients how to use them to their advantage.
YES, YOU CAN LOSE EVERYTHING!
You may think that your wealth is safe and that you don't need protection. But don't delude yourself and accept reality — for every 60 minutes you spend making money, spend 60 seconds thinking about how to protect it!