What is Asset Protection?
Asset protection is a method of managing risks and protecting your assets from being part of a lawsuit. Because our society has become increasingly litigious, asset protection is more critical today than it used to be. Individuals in professions like medicine, business, or owners of rental real estate may have always been concerned with asset protection, but it’s now a topic of concern for other people as well and should be considered as a part of any comprehensive financial strategy. Some financial products may help meet your financial goals as well as provide some asset protection. The goals of an asset protection strategy include:
- Safeguarding assets
- Protecting your estate
- Special considerations
The rules related to asset protection are specific to the state you live in. However, most states have laws that make it extremely difficult to prepare if creditor claims already exist. Preparing well in advance before claims arise is important. To begin, you should work with a local attorney with expertise in this area. You can also discuss the subject of risk management with your financial professional as part of a comprehensive financial strategy.