Asset Protection When Life Throws you a Curveball
Life is full of unexpected events and some of those events come with big financial implications.
We get about 5 “hair on fire” calls a week from individuals who are dealing with unforeseen liability. Such as…
- Accidents
- Tenant issue at rental income property
- Employee lawsuits
With over 40 million lawsuits filed in the U.S. each year, it’s important to take the appropriate steps to guard your assets. Especially when the “seas are calm.”
Here’s a guide to help you.
Insurance is your first line of defense against unforeseen liabilities. Make sure your insurance is adequate in the following areas:
- Homeowners or Renters Insurance
- Auto Insurance
- Health Insurance
- Umbrella Insurance
Consider legal tools to shield your assets from potential claims:
- Trusts: Establishing an irrevocable trust can protect assets from creditors and lawsuits. Consult with an estate planning attorney to set up a trust that meets your needs.
- Homestead Exemption: In many states, the homestead exemption protects a portion of your home’s equity from creditors. Check your state’s laws to see if you qualify.
- Retirement Accounts: Contributions to qualified retirement accounts, such as IRAs and 401(k)s, are often protected from creditors under federal and state laws.
Separate your personal and business assets. Corporations and Limited Liability Companies can help to guard your personal assets from a business liability.
Your estate plan should be up-to-date and in tune with proper asset protection strategies.
Be careful of Joint accounts and co-signing loans which can expose your assets to the liabilities of others.
Asset protection laws can vary state by state so it’s important that you work with an attorney who understands the landscape.
If life throws you a curveball you will need your asset protection tools to work properly.
The post Asset Protection When Life Throws you a Curveball first appeared on Barth Calderon Attorneys | Asset Protection Attorneys.
