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Sunday, 28 July 2013

What Is Asset Protection And How Can One Benefit From It

By Maryanne Goff


Knowing what is asset protection enables you to secure your hard earned cash and property from persons and institutions that may have won law suits against you. The categories of lawsuits involved are negligence that led to accidents, foreclosure, marital issues, among others. This keeps the assets within your reach and that of your family by changing their legal jurisdiction.

You will be required to plan if your assets are to be well protected from claimants. They will henceforth be referred to as exempt assets. The process of planning should be done before a judgment on the assets can be delivered. Any attempt to transfer the property in the course of proceedings will is considered a criminal offence. It borders unnecessary delays, hindrance and fraud on justice.

Transfers that were made after a lawsuit was filed can be reversed by the court. You are called to be diligent and make your move long before anyone has filed a claim on your property. Develop a plan that includes long and short time financial goals at a personal and estate level.

Short and long term goals are anchored on your sources of income and how you intend to grow them over the years. You should consider financial needs when you retire and what you will set aside for your dependants when they need your support or independence. These evaluations will give you a clear picture of your direction regarding finances.

During financial planning, it is important to identify assets that can be attached in case a creditor comes calling. You should begin by securing these assets to keep them out of reach by creditors. Personal planning should go hand in hand with estate planning. Identify the current position of your estate and how you intend to grow your incomes. Consider identifying a caretaker for your estate in case you are mentally incapacitated.

Property heirs should be considered as well. Include a guardian who will watch over your children should you pass on before they are of maturity age. Formation of family limited companies has helped many people achieve financial independence. Irrevocable trusts in your name, that of your spouse, children or beneficiaries is the other options worth considering.

A solid financial plan includes integrated personal and estate financial goals. All assets must be captured and secured from possible reach by creditors. Having such a plan and having your assets safely tucked away gives you a chance to negotiate with creditors when they appear on your door. You remain the sole controller of your assets regardless of who delivers a judgment against you. You are practically out of reach.

Having clarity on what is asset protection allows you to make the right decisions and begin planning in good time. The plan should be in place long before a suit is filed against you. Such delays means exposing your hard earned cash and property to attack by creditors or a reversal of your financial stability plans. The processes involved are lengthy and the entire exercise requires deeper thinking. Waiting until it is too late will only jeopardize your chances of restraining creditors and securing your financial future.




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