Privatise Your Life Using Asset Protection Strategy
To develop an effective asset protection strategy, you need to understand what can put you at risk and what steps you can take to protect yourself from that risk.
Typically, when you are looking to protect your assets, you would first consult your family lawyer or accountant to obtain good advice. Unfortunately, these people rarely have the experience needed to correctly advise you on the do's and don'ts of asset protection.
This is where an asset protection strategy can become your greatest ally and provide you with the peace of mind you seek. To develop an effective asset protection strategy, you need to understand what can put you at risk and the steps you can take to protect yourself from that risk.
Know the Opposition
To be able to practice effective asset protection, you must know your opposition, know what they are after and how they intend to get it. A strong asset protection strategy builds and supports protective barriers against this opposition and their motivation.
In most cases, if someone is going to sue you, they are after money. Thus, the first thing a legal representative for your opposition will do is establish whether or not you are a good target and worth the energy to go after. Do you have anything of value that is worth suing for? This includes any assets that can be tied to your name or your Social Security number. This information is readily available to almost anyone who wants it. Also, remember that it doesn't matter if you are a good person and haven't done anything wrong. If people want your money and think they can get it, they'll go after it.
The best asset protection strategies include separating your assets from your identity, timely protection and a structured plan. Here's how each of these strategies work.
Separation of Assets and Identity
The best way to do this is to make sure all of your assets are controlled by someone or something that cannot be directly tied to you or your Social Security number. In an asset search by opposing legal counsel, if you have suddenly transferred all of your assets to a relative, you will most assuredly be found out. So, the entity you control your assets through cannot be directly tied to you. It is wise to seek asset protection advice to learn the best ways to accomplish this.
This is the most successful and effective way to achieve asset protection. If you appear to have none, no one will try to take them away.
The second part of an effective asset protection strategy involves timely protection of your assets. You must have your assets protected before you are ever in a position to need the protection. In other words, before you ever get sued.
What would happen if you were served with a lawsuit and then made efforts to protect your assets after the fact? Any lawyer worth his salt has already performed an asset search to see what you are worth. If those assets suddenly transfer to someone else, you can bet there will be worse problems for you to face when it is discovered. This is an illegal act known as fraudulent conveyance. Therefore, the only way to effectively practice asset protection in a timely manner is to do it long before you ever feel the threat of a lawsuit.
A Structured Plan
Another way to implement asset protection is to have a structured plan in place of how you will accomplish this. You need to have a legal strategy in place that is geared to meet your situation and needs as effectively as possible. The careful planning and execution of your asset protection plan is your only legal barricade if the details are discovered by the opposition.
If you have carried out all possible means of your asset protection strategy efficiently and legally, then your assets are still protected and no one can get to them. This holds true even if your opposition has discovered how you did it.
To learn more about developing and maintaining an asset protection strategy, contact an experienced professional who can guide you on the path to financial peace-of-mind.