It is said that true prevention is not waiting for bad things to happen, it’s preventing things from happening in the first place. You’re buying a new car, you have signed the financing contract, vehicle purchase contract, odometer statement, but before you’re given the keys to drive your brand-new car off the lot, you must show proof that you have insured the vehicle. Why? Lenders want to ensure you’re protected, and most importantly, they are protected too. That brand new asset can quickly become a liability. As your drive what some case law calls an inherently dangerous machinery, there is much liability that flows with the benefit of driving that beauty.
Similarly, is owning a house. Property insurance protects owners from unforeseen circumstances such as fire, theft, and natural disasters. One would hate to spend thousands of dollars buying their vacation home, or work many years to finally make that down payment on that house they’ve been yearning for, only to lose it to some catastrophic disaster. That is why a savvy realtor or mortgage broker would always advise their client to obtain property insurance. Most traditional lenders won’t fund a transaction without proof of an insurance that protects their interest. One mistake can cause you thousands of dollars, your life savings, or your entire retirement plan. So long to that luxury all-inclusive vacation because now you have to start over in rebuilding your financial empire.
Whether you’re a dentist, lawyer, accountant, entertainer, entrepreneur, considerably rich or with only a few dollars in the bank, we all need asset protection. It does not matter your line of work, occupation, or size of your wallet, what’s important is that you are protected. It an unproven myth that asset protection is only for the wealthy. Arguably, a person who is less fortunate has more to lose than one with a deep pocket. If you take one hundred thousand dollars from a millionaire, they’re still left with some money. If you take one hundred thousand dollars from a retired teacher when they only had a few hundred thousand dollars to begin with, they’re in financial ruin.
You may think you don’t have anything worth protecting, but you never know. Taking the necessary measures to protect your assets can go a long way from saving time in arduous litigation to preventing financial ruin. It’s best to be proactive in your asset protection planning than waiting till the last minute for when something goes wrong. Too many times we see situations where people would wait until opposing counsel gives them an asset disclosure sheet for them to then to consider seeking help on how to protect their assets. There is a better way, it’s called proactive planning.
With proactive asset protection planning, you don’t wait for a problem, you prepare in anticipation that there could be a problem. Research shows that nearly seventy percent of Americans have less than one thousand dollars in savings. No nest egg, no emergency fund, nothing in case of a job loss, or car break down. As it may be appalling to read such a fact, that is the state of many people in protecting their assets. It doesn’t require hundreds of thousands of dollars to implement asset protection. Depending on a person’s goals and plans, their asset protection infrastructure would be tailored to their needs. Consider it as a blank canvas. You start off with your framework, foundation, and as you continue you add the embellishments.
You may wonder, do I own any assets needing protection? The list doesn’t fall short of the different assets classes that one could protect. Some of the assets are:
- Cash
- Business Interests
- Family Home
- Vacation Home
- Rental Property
- Intellectual Property
- Cryptocurrency
- Equipment
- Family Heirlooms
- Collectibles
As this list is not inclusive of all the assets that should be protected, one should consult an experienced asset protection attorney to determine the best planning strategy for them. At The Presser Law Firm, P.A. we specialize in helping our clients build the necessary asset protection infrastructure. Our attorneys are the experts in making sure the best planning is put in place to protect your assets.
