Peace of Mind with Asset Protection

In order to protect your assets, you really need to plan ahead. But do not think that “asset protection” is the only way to do this – you first start with having appropriate liability insurance. Anyone wishing to protect his or her assets must consider both asset protection and insurance in order to be adequately protected.

For some individuals, they believe that an asset protection plan is such a formidable measure that plaintiffs will not even attempt to challenge them. But this is definitely not something you can always depend on. These plans will not cover all of the legal fees associated with a lawsuit.

This is where insurance could come into play, as it may cover defense costs. Depending on the type of policy purchased, an insurance company could cover both the fees associated with the defense and the actual cost of a settlement.

In addition to having appropriate insurance, personal and business assets should always be kept separate. All too often, we work with clients who blur the lines between the two.  Many business owners wish to be protected from their business’ liabilities only to be exposed because they did not follow the state law formalities associated with their business.  As simple as it sounds, having a healthy respect for these formalities, which include keeping funds separate and having periodic meetings that are documented, will minimize these exposures.

A good lawyer can effectively manage and balance the necessary issues involved with an asset protection plan. This balancing act should protect a client while giving the client adequate control over his or her assets.