Working hard for your money is, unfortunately, not enough to ensure financial security… even if you are able to earn and save a lot of money. Everyone is vulnerable to potential loss, and there are many risks that you face which could jeopardize everything you have worked so hard to build. You owe it to yourself and your family to take steps to identify those risks and to minimize the potential for loss. To do this, you need to get legal help with asset protection.
Nehoray and Drake, LLP provides asset protection assistance to people who have just started to save, to people who have built up a comfortable nest egg, and to individuals who have amassed great wealth. Whether you are a billionaire or a person with a small savings account, we treat your legal issues with the importance you deserve because we know how hard you have worked. Give us a call today to find out about personalized advice you can receive about asset protection, and to get answers to questions you have about asset protection including:
- Why do I need asset protection?
- What should be part of my asset protection plan?
- How can an asset protection lawyer help?
Why Do I Need Asset Protection?
The reason that you need asset protection is because everyone faces risks in their lifetime. The only question is: what is putting your financial security in jeopardy?
There are lots of different possible ways your nest egg could be lost, leaving you and your family members worried about money since you could be stripped of your wealth. Some of the possible sources of loss include:
- Business debts or business bankruptcy for business owners.
- Bad actions or poor decisions on the part of co-owners or partners of a company that result in a lawsuit or claim against a business you own with others.
- Any type of lawsuits against a company you own.
- High costs of nursing home care which are not covered by insurance.
- Lawsuits against you or your family members personally for things like auto accidents or accidents in your home.
- Mismanagement of assets and/or a delay of appropriate asset management if you are rendered incapacitated due to illness or injury.
- High estate taxes forcing asset liquidation after death.
- High probate court costs and fees which eat into the value of your estate and impact an inheritance.
- Irresponsible heirs who squander the financial gifts you have provided them.
The risks exist during your lifetime, but also extend even after you are gone. You should think carefully about what your biggest vulnerabilities are and should make the type of plan you need to keep your nest egg safe.
What Should be Part of My Asset Protection Plan?
Just as there are many ways your assets could be lost, there are also many ways to protect your wealth. Your asset protection plan should include appropriate legal tools addressing the greatest sources of potential loss, given your personal and professional lifestyle.
Some of the possible tools that could be used for asset protection purposes include:
- Incorporation of a business or formation of an LLC. Both will shield you from personal liability that goes beyond the scope of your investment if you own a business.
- Purchasing sufficient insurance. Life insurance obviously is a good buy if you are concerned about your family’s financial stability after you are gone. However, you should also make certain you have auto and homeowner’s policies with large limits in case an accident should unexpectedly happen that you become responsible for. If you have too little insurance and a judgment is rendered against you that exceeds policy limits, you could end up with the person who got the judgement trying to come after your personal assets.
- Creating the right contracts. For example, if you are worried about co-owners or employees leaving your company and putting the business investment you have made at risk, you can take steps such as using buy/sell agreements and non-compete agreements to protect your business.
- Investing in IRAs and other protected investment accounts. These types of accounts are given special legal protections. You also get tax breaks for investing in them, up to allowable limits.
- Creating trusts. Trusts are a versatile and powerful asset protection tool that can allow you to shield resources so you can qualify for Medicaid nursing home care and that can also allow you to do so much more, including providing an appropriate inheritance for a minor child or person with a disability.
How can an Asset Protection Lawyer Help Me?
Nehoray and Drake, LLP can provide the help you need with asset protection. To discover more about what is involved in protecting your wealth, give us a call today.