Asset protection should be considered even at the earlier stages of your career. Even when you think you don’t have much to protect, anyone with any kind of asset is at risk of losing them.
Create Your Hedge
Asset protection can take different forms and some are more bulletproof than others. Fortunately, you can layer your protections, although doing so can cost you a pretty penny. That said, spending extra for asset protection is still better than losing what you have to litigation.
One of the things you should first consider is how to remove these assets legally from your name while still maintaining control over them. Somebody looking to sue you to gain your assets is likely to be discouraged once they find out you own nothing in your name.
Hold it in Trust
Another way to take these assets out of your name is to set up a trust. You can set up a family trust to protect your home, for instance. The process of doing so varies from state to state. This means that setting up a family trust in South Jordan, for example, should be done with a consultation with the legal counsel from that area. MDF Estate Planning, Inc. further adds that this consultation is important, as there are two types of trusts to choose from:
- Revocable – It’s where you can take back the assets you put under it.
- Irrevocable – It’s where you can no longer do take back assets.
Create a Corporation
One final way to protect your assets is to set up a limited liability company or a corporation to hold your real estate. You can, for example, put your home under a corporation. This way, should an accident happen on your property, the litigator will only be able to touch your house while all other assets remain safe from any legal involvement.
The idea of safeguarding your assets may seem like a lot of trouble, but you’ll appreciate it in the end. Think of it as an insurance — you won’t know that you needed it until something untoward happens to you or your assets. With legal protection for your property, you can be sure that what you worked for will not be taken away so easily.