The long-term goal of asset protection is to provide security against any threat to your wealth. So, how does estate protection do this?
Asset Protection Helps Avoid Lawsuits
New York City is placed third on the annual list of “judicial hellholes” in the US. It boasts of individuals that have sued others more than 25 lawsuits in their lifetimes.
When you have an asset protection plan in place, you get to avoid a lawsuit even before it even happens. The threat will just fizzle away and won’t have any effect on your wealth.
It Helps Reduce the Settlement
At times, asset protection lawyers help you reduce the amount you need to pay in the form of settlement. After all, going through the lawsuit can be a very unpleasant affair that you might not want to happen. This is why you need to have an asset protection plan in place so that even if you get sued, it won’t cost you the entire estate.
It doesn’t mean that the plan didn’t work when you are required to pay for damages caused; it is just because the plan worked right, and you got a smaller settlement.
As an asset protection attorney, I have seen many clients happy with the settlement that they pay when faced with a lawsuit. But this only happens with an asset protection plan in place.
Additionally, the creditor has a long way to go to squeeze something out of you. And as they exhaust the options they have one by one; they realize that a lot of your assets are untouchable. The creditor eventually gets tired of running after the wind and will go back to the negotiating table to try and get a favorable settlement.
Asset Protection Secures Situations that Insurance Cannot Cover
If you have an insurance policy, the chances are that it doesn’t cover all the assets and situations. When taking out an insurance cover, you know too well that it can’t cover divorce and bankruptcy, which makes a good asset protection plan an excellent way to fill any holes that the insurance has left exposed.
Helps Secure the Future for Your Loved Ones
We have talked about estate planning and its role in helping you secure your future for the kids, but this isn’t the only tool that you have to secure your assets.
With proper asset protection planning, you come up with a strategy to protect your assets so that your kids are assured of something when you pass away.
Reduces the Chances of Litigation
If you own a home in New York, you have a one in three chance of getting sued at one time or another. If you own a business, the chances more than double. Depending on how risky your business is, the chances multiply.
We have seen hard-working clients that have come up with huge businesses only for them to be taken down by a single litigation. Of late, one of the biggest get-rich-quick schemes is to sue somebody.
Well, when you have an asset protection plan in place, then integrate it with your insurance cover; you end up paying less from your pocket because the insurance will cover a big part of the litigation cost.
Protects You Against Creditor Lawsuits and Unfavorable Taxation
Not everything that the government imposes on you is good – at times you have to avoid them.
When you choose to go offshore, you get to protect your personal property as well as business assets against claims from creditors and unfair taxation laws in the country of domicile.
Additionally, an offshore trust gives you the privacy that you need to keep your possessions away from the public eye.
Secure Your Assets in a Flexible Manner
Apart from securing your assets in a jurisdiction that is secure and stable, the plan can also be formed for different purposes including insurance plans, employee benefit schemes and retirement plans.
The plan can be made fast and be tailored to a specific purpose. When you form an asset protection plan, you gain have complete anonymity whereby no one knows who was involved in the plan.
However, different jurisdictions have exemptions, which you need to be conversant with. If you have relocated to NYC, and you need a plan, talk to an asset protection attorney to get guidance on what to do.
Enjoy these Benefits Starting Today
Even with insurance, you are better off with an asset protection plan than if you don’t have one. Work with an asset protection attorney to give you the way forward and come up with a plan that is tailored to your needs. The earlier you start the process, the better for you.
