Top Asset Protection Strategies to Consider
By Barry Zimmer on September 6th, 2016 in Asset Protection
Knowing the right asset protection strategies is very important. Whether you are beginning to build wealth or you already have a substantial nest egg that you want to protect, you need to know where you are vulnerable to loss and you need to take steps to protect what you have worked for.
Zimmer Law Firm provides comprehensive assistance with asset protection to clients in Cincinnati and surrounding areas. We know how to help you identify and implement the asset protection strategies that are right for your situation. You work too hard to build your wealth to leave your financial security up to fate, so give us a call today to find out how we can help you to identify and mitigate risk.
Top Asset Protection Strategies
The best asset protection strategies are those that are tailored to the specific risks that you face. Some top examples of asset protection strategies include:
- Incorporating or forming an LLC if you are a business owner. Business owners are particularly vulnerable because if their company is sued or goes bankrupt, they can end up losing personal assets. By incorporating or creating a Limited Liability Company, you can make your business a separate legal entity. This would mean that you are not personally responsible for business debts or judgments against the business, as long as you do not co-sign for debts and as long as you follow corporate formalities.
- Owning exempt or protected assets. Money Crashers indicates that both a house with a homestead exemption and various types of retirement accounts, like IRAs, are given special protections. For example, if you have to file for bankruptcy, a portion of your home equity and your IRAs are protected and will not be lost.
- Making use of trusts. There are different kinds of trusts that serve different asset protection purposes. You can use irrevocable trusts for Medicaid planning to make sure Medicaid pays for the cost of a nursing home if you need one, without you having to spend down your assets. You can use irrevocable trusts to allow assets to be transferred outside of the probate process, which means they can go to their new owners more quickly so the assets are carefully managed (although it is important to note that revocable trusts don’t protect you from estate taxes). You can also use revocable trusts as part of an incapacity plan.
- Getting sufficient insurance. You should check your automobile insurance policy as well as your homeowner’s insurance policy or renter’s insurance policy. Make sure you have enough liability coverage so the insurer will pay even large settlements and your personal assets won’t be at risk. You may wish to think about an umbrella policy as well, which would provide additional protection above-and-beyond what your other insurers cover.
There may also be other steps you wish to take, such as creating a prenuptial agreement to protect assets before marriage or the use of special kinds of trusts like a spendthrift trust or special needs trust in case your heirs aren’t responsible with money or are disabled and receiving government benefits.
Choosing Asset Protection Strategies that Work For You
Everyone’s situation is different and the specific risks that you face are going to be unique to your situation. For example, business owners face different risks than someone who is a landlord or whose wealth is in the stock market.
When you work with an experienced Cincinnati asset protection lawyer, your attorney will help you to conduct a risk analysis so you can find out what makes you vulnerable and what the biggest risks to your financial security are. Once you have identified areas where you are most at risk, your attorney can help you to identify and implement the asset protection strategies which make sense for your particular situation.
Getting Help with Asset Protection Strategies
Zimmer Law Firm understands how hard you have worked to build up financial security and to grow your nest egg. You deserve to enjoy all of the fruits of your labor and you deserve to be able to use your wealth to leave a legacy. We will help you to make sure that you can do that by assisting you in making effective use of asset protection strategies.
To learn more about some of the asset protection tools that are available to you, you can join us for a free seminar. You can also give us a call at 513.721.1513 to find out more about the ways in which our legal team can help you to grow and protect your wealth.