Most individuals in Texas wouldn’t drive around without car insurance, and whenever possible, most people seek health insurance coverage. Protecting property, such as cars and homes, is important to us. Protecting our health and bodies is also important. Surprisingly, many people fail to take the same approach to protecting their assets, perhaps because they are unaware of the need to do so.
Asset protection planning can begin anytime during life, and it can be related to personal assets, business assets or the assets of your estate. By planning ahead and using legal strategies, businesses and individuals can protect assets from creditors, governments, business partners and family members. They can also protect assets for use in the future by family members, charities or business partners.
Some legal tools that can be used to protect assets include revocable trusts, family limited partnerships, charitable trusts, irrevocable life insurance trusts, annual gifting exclusions and AB trusts. In the end, the way you manage your finances is completely up to you as long as you stay within legal channels; seeking legal help doesn’t usually block you from doing things you want with your wealth or money. In fact, legal assistance may be able to help you do those things in a more protected, convenient manner.
Strategies and goals for asset protection obviously depend on your preferences and specific situation. What works for a small business owner doesn’t work for an heiress with a large family, for example. Since asset protection is also impacted by federal, state, local and even industry law, learning more about your options and seeking assistance with filings and documents can help ensure you mitigate financial surprises in the future.