When one would have a lot of assets, there will be times that when these little assets would be under attack from outside forces. Of course in order to be able to protect himself, he would definitely need to start putting up some guards early so that he does not get caught off guard. Now to do this, he would need to first do some asset protection planning.
Now the very first line of defence against any predators would first of course be a solid and strong liability insurance. So the first thing to do with this would be to make sure that this insurance policy would cover a lot of situations especially the situations wherein one could be sued by someone. Of course the one who should be consulted about this would be an insurance broker.
It is also advised that one would separate the assets that he uses for his own personal life and the assets that he would use for business. Now if he would separate the two, then just in case one person will attack one of the set of assets, that person will not be able to get the other ones. For example, if people from his office attacks his business assets, at least they will not touch his personal ones.
Now there are a lot of people who would consider having a joint account when they get married. However, many experts believe that this is a bad idea because if there would be a disagreement between the spouses that would be taken up to the court, all the money could be taken by one party. So for one to protect himself, he should have one personal account separate from the joint one.
Another thing he can do to make sure that this does not happen to him would be to keep the balance low. Now if he were to put majority of his cash into another account, not much will be taken from the joint account in the event. This way, one can still have a joint account with his spouse and still protect himself.
Now if one has a property that he is renting out to tenants, he must also be vigilant in protecting his personal assets. Now in order to do so, he has to first create a business or a corporation that would take over the managing of the rentals instead of him. So in the event that a tenant attacks him, the tenant may only go as far as the assets of the business.
One rule in asset protection would be to never bank on bankruptcy. Although sometimes it is a strategy to wipe off debts, it does not always go the way one would want it to. If he would declare bankruptcy, then he better not except his assets to not get touched along the way.
So as one can see, there are a lot of things one has to take note of when managing assets. The trick here is to always be prepared no matter what. The person who has his guard up all the time will never lose.
Now the very first line of defence against any predators would first of course be a solid and strong liability insurance. So the first thing to do with this would be to make sure that this insurance policy would cover a lot of situations especially the situations wherein one could be sued by someone. Of course the one who should be consulted about this would be an insurance broker.
It is also advised that one would separate the assets that he uses for his own personal life and the assets that he would use for business. Now if he would separate the two, then just in case one person will attack one of the set of assets, that person will not be able to get the other ones. For example, if people from his office attacks his business assets, at least they will not touch his personal ones.
Now there are a lot of people who would consider having a joint account when they get married. However, many experts believe that this is a bad idea because if there would be a disagreement between the spouses that would be taken up to the court, all the money could be taken by one party. So for one to protect himself, he should have one personal account separate from the joint one.
Another thing he can do to make sure that this does not happen to him would be to keep the balance low. Now if he were to put majority of his cash into another account, not much will be taken from the joint account in the event. This way, one can still have a joint account with his spouse and still protect himself.
Now if one has a property that he is renting out to tenants, he must also be vigilant in protecting his personal assets. Now in order to do so, he has to first create a business or a corporation that would take over the managing of the rentals instead of him. So in the event that a tenant attacks him, the tenant may only go as far as the assets of the business.
One rule in asset protection would be to never bank on bankruptcy. Although sometimes it is a strategy to wipe off debts, it does not always go the way one would want it to. If he would declare bankruptcy, then he better not except his assets to not get touched along the way.
So as one can see, there are a lot of things one has to take note of when managing assets. The trick here is to always be prepared no matter what. The person who has his guard up all the time will never lose.
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