Asset protection is one of the most important financial planning steps. Just as saving money and making smart investments are important to achieving financial security, so too is protecting all that you have worked to acquire. If you do not make plans for the security and protection of your wealth, you are vulnerable to many different kinds of loss, most of which can happen unexpectedly at any age.
When you devote your work to building up wealth and buying assets you care about, you owe it to yourself to take some reasonable steps to protect those assets. There are certain risks you face which could cause you to lose all you have worked for if you have not made advanced plans. Understanding the risks which make asset protection essential is very important so you can make the smartest possible choices to achieve a secure future.
The Law Offices of James A. Miller, P.C. can provide invaluable assistance with all of your asset protection issues. From helping you to identify risk factors to creating legal documents and using legal tools for you, our legal team takes a client-focused approach to asset protection. Everyone’s sources of wealth and biggest risk factors differ depending upon their personal situation, so there is no substitute for legal advice tailored to you.
The Big Risks that Make Asset Protection Essential
The importance of asset protection cannot be understated, and the need to protect assets should not only be a concern for people of a certain age. Risks are everywhere, and can affect people in all walks of life. In fact, some of the biggest risk factors which you could face include:
- Lawsuits: You could find yourself being sued if you are involved in an accident, or if someone hurts themselves on your property. If you do not have sufficient insurance coverage because you have no policy or your policy limits are too low, your personal assets could be at risk as a result of a lawsuit against you.
- Business losses or bankruptcies: Business owners not only face risks due to personal lawsuits or personal financial challenges, but are also going to find their assets in jeopardy if something goes wrong with their company. Depending upon how your ownership is structured, bad business decisions by partners or a lawsuit against your business could lead to personal financial disaster. You need to make your company a separate legal entity through forming an incorporation or other type of specialized business structure if you don’t want your personal wealth jeopardized by a lawsuit, business bankruptcy, or company debts.
- Nursing home costs and medical expenditures: If you have to go into a nursing home, you could be forced to pay privately until you have spent down enough of your assets to qualify for Medicaid coverage. You could lose most or all of your entire nest egg if this happens.
- Incapacity: If you become unable to manage your assets, what will happen to them? If you have not made advanced plans to name an agent, attorney in fact, or trustee to take over asset management, the assets could decline in value as your family takes the time to pursue guardianship proceedings. Someone without knowledge of how to effectively manage your assets could also be appointed as guardian, resulting in financial loss.
There are different tools you can use in order to protect your assets and reduce the potential for loss. You need to consider both risks affecting you during the course of your lifetime, as well as some of the ways your assets could be lost after you are gone. Through the use of tools like trusts, power of attorney, insurance products, and business succession plans, you can hopefully help to protect what you have worked so hard to build over the course of your life.
Getting Help with Asset Protection
Asset protection needs to be taken very seriously, especially as you could be at risk of losses at any time. Making use of legal tools to protect your assets is generally not something that you should try to handle on your own because of the potential for mistakes and problems. Instead, you need to get the right legal advice from a qualified estate planning professional.
The Law Offices of James A. Miller, P.C. has provided invaluable assistance to many clients with asset protection. We understand how you can effectively protect yourself so your wealth can be preserved for your loved ones and for future generations. To find out more about the importance of asset protection, join us for a free seminar. You can also give us a call at 866-370-3888 or contact us online to get personalized asset protection help.
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