When should you consider Asset Protection? The answer is different for everybody and you weigh the factors, your assets and risk. Risk can stem from your business, your business partner, driving your car, your children, your home, etc. Most of us are already exposed to some degree of risk and most of us have something to protect us from that risk, such as insurance policies. What are the thresholds that make asset protection planning even more important?
There are tactics that protect your assets at every level, and a skilled asset protection plan will have layers to how it defends your assets. If you own and drive a car and have a standard liability insurance policy, that is a single layer of protection. Should you be at fault in an accident that exceeds your coverage limits, everything you own is exposed. The same goes with business liability and being a home owner, or any other avenue of risk. Asset protection is proactive levels of protection for your wealth.
You should consider what you stand to lose if you are ever threatened with a legal storm. Equity in your home, investments, vehicles, bank accounts? Depending on how much accumulated wealth you have to protect, the levels of planning vary. Less than $1 million probably wouldn’t warrant offshore legal structuring and under $1 million there are a number of ways to secure your assets into a skilled plan that you are comfortable with.
Planning asset protection isn’t important just for millionaires, it’s important for anyone that has worked hard to have what they do.