7 Tips on Protecting your Wealth
With each passing year litigious activity nationwide increases. With this increase comes a higher chance of being involved in a frivolous lawsuit. Many Americans work hard to earn their wealth, but few make strides to protect what they have earned. Here are some tips on how to protect that hard earned money:
- Know your worth. A majority of people have more assets than they think or realize. Taking inventory of what you own and how it is owned is a necessity in protecting your wealth.
- Converting non-exempt assets into exempt assets. Each state has a different set of laws governing the protection of personal assets from lawsuits and creditors. These laws generally include the protection of your primary home; personal items such as clothing; retirement funds and life insurance. Knowing the exempt assets in your state will make for a better protection plan.
- Don’t rely solely on liability insurance. Insurance is a great tool for claims which are covered by your policy. The truth of the matter is that 70% of claims are not covered by insurance, and your coverage may be inadequate for the particular case. Having insurance is encouraged and can be a huge help, but it is not something a business owner should solely rely on.
- Avoid Fraudulent Transfers. A fraudulent transfer occurs when a creditor does not get paid because a person or entity transfers assets with the intent to hinder, delay or defraud a creditor. This can invalidate your entire asset protection plan.
- Don’t title your assets solely to a “straw man” or spouse. They may have more financial problems than you do.
- Encumber your assets. What is a $500,000 house worth if you owe $495,000? By taking out lines of credit on your assets or recording mortgages against your property you make your asset unattractive for creditors and lawsuits.
- Keep your plan up to date. Laws change every year, there could be some changes that affect your asset protection plan. Yearly reviews are encouraged.
The Presser Law Firm, P.A. can integrate an Asset Protection Plan with your existing Entities and Estate Plan or work with you to create a new one. Contact us today for a complimentary preliminary consultation regarding your Asset Protection options.
The Presser Law Firm P.A.
6199 N. Federal Highway, Boca Raton FL 33487
(800) 999-9992 or e-mail firstname.lastname@example.org