Asset protection, it is talked about, thought about but all to often is not put into action. Yes there are very expensive strategies for those with lots to protect, understood. However I suggest that even if you have just a little to protect like your home or some savings, it is even more important to protect these assets as without them you have nothing left. Further asset protection also goes to your business assets which must be protected as well as these support your income stream.
While there are asset protection plans that include trusts, offshore accounts and deeply layered protection, there are also some simple basic strategies that are incredibly powerful that many of you can take advantage of that will improve your security.
For example, if you refuse to have your spouse guaranty your notes, the property she owns, like your home will not be subject to issues that affect you, protected to various degrees.
If you own your summer cottage, or income property in a separate LLC it too will be protected from invasion by creditors or law suits.
If you also hold stocks and bonds in a separate account, protection. Use your family to protect from your risk.
If you move valuable assets used in your business to a separate LLC and lease them to the operational company, protection is provided from lawsuits or creditors of the operational company..
If you are making money you can create all sorts of opportunities to pay license fees to your separate entity, commissions or what ever removing large amounts of cash from being a target in a law suit, without taking them out of use or declaring them as personal income, further protection.
Get with the plan, there is no need to get caught with exposed assets and you do not need off shore accounts and expensive trusts and planning, simple logic will prevail. Use others, use LLC’s and organize effectively. It is not that costly and will provide ample amounts of asset protection for most small businesses.