If you are like most of us who have worked hard to be comfortable and acquire some assets you should be concerned with deterring and preventing it from being taken away.
Asset Protection planning is wealth preservation.
The US doesn’t have a “loser pays” legal system. In other developed countries, the plaintiff is forced to pay both sides’ legal fees, which is a huge deterrent for frivolous lawsuits. In some cases, here in the US, attorney firms make a living litigating and some never see the inside of a courtroom.
Insurance is the first line of defense towards protecting yourself. You, ultimately, hand off your risk to the insuring company, easily done, and sometimes, required by law. There are too many cases where insurance coverage limits didn’t cover the risk that was faced or the total value of a liability claim. Insurance companies are also tasked with finding a loophole to deny your claim. An asset plan protects your assets at the source – your wealth.
In today’s world the average person is subjected to several lawsuits in his/her lifetime, one of which could be a “killer lawsuit”. The United States has 5% of the global population, yet 70% of the world’s lawyers, a person can be faced with losing everything at any moment.
Lawsuits can arise from the workplace, an auto accident, a customer, a tenant, a disgruntled employee, business partnerships, a spouse or a neighbor. In today’s world everything boils down to money and a lawsuit is how wealth is transferred from one party to another in the name of damages.
Legal Ramp Up
Lawsuits take time and money, even if a party has a solid claim. Pursuing a judgment or settlement is an investment for both the plaintiff and his/her attorney. There is little value in a judgment without the assets or income to satisfy it. Part of the legal ramp up to a lawsuit is locating the defendants wealth.
Utilizing asset protection concepts and planning tools can completely remove one’s assets from the radar, or with known assets and proper planning, make it near impossible or so expensive to pursue that there is little to no benefit in suing a well-protected individual.