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Understand the Core Goals of Asset Protection

Hand stopping dominoes from falling. Goals of Asset Protection.

Asset protection is an important element of long-term financial security. This guide will help you understand the core goals of asset protection and learn how to protect your assets from catastrophe, taxes, creditors, and more.

One Of The Goals of Asset Protection Is To Deter Litigation.

Laws vary by state, so it’s important to consult with a knowledgeable attorney when crafting an asset protection strategy. That said, the most common way to deter litigation is by creating entities like LLCs or trusts that limit your liability and may be used to protect your assets from creditors and other claimants. You can also use LLCs to insulate certain assets from personal debt and offer protection against frivolous lawsuits.

Provide an Incentive for an Early and Inexpensive Settlement.

An effective asset protection strategy should provide an incentive for claimants to accept early and less expensive settlements. For example, you can use LLCs to limit the amount of assets available if someone files a lawsuit against you. This essentially creates an incentive for them to settle instead of being awarded all the assets they are suing for. Creating an LLC and having documents drafted correctly by an experienced attorney can give you peace of mind in the event of a claim against your assets.

Cause Your Opponents to Work Harder and Get Less.

Asset protection relies on one key idea: make your opponent work hard and get less. Legal structures, such as LLCs, can help accomplish this by limiting the amount of assets a claimant is able to access. This encourages claimants to settle for an earlier and cheaper amount rather than spending more money in legal fees and having their claim adjudicated in court. Additionally, asset protection allows you to dream bigger so that you can replicate successes without worrying about future litigation.

Definition of Success in Asset Protection Measured By How Much Less a Creditor Will Get.

One of the core goals of asset protection is to ensure that creditors and claimants receive as little money from you as possible. Different asset protection structures, such as trusts and LLCs, work together to limit the assets a claimant can access. This encourages them to settle for an earlier and cheaper amount rather than spending more money on legal fees in the hopes of a larger award. Without asset protection, you could leave yourself open to serious liabilities in the future. So having an effective asset protection plan will help protect your investments and prepare you for any future legal battles.

Imagine Life Without Worry When You Know Your Assets Are Secured And Your Retirement Cannot Be Destroyed!

When you have an effective asset protection plan in place, you can rest easy knowing that if anything happens to your assets–whether it’s a lawsuit, divorce or even death–you will have the financial security to protect what you’ve worked hard to build. Asset protection can also provide peace of mind during retirement when your funds are at their most vulnerable. With proper asset protection, you know your investments are safe from those who would try to take them from you.

Conclusion.

The goals of asset protection are:

  1. Deter lawsuits.
  2. Provide an incentive for people to settle with you rather than pursuing a long, drawn-out lawsuit.
  3. Cause people who sue you to work longer and harder.

Asset protection is not an all-or-nothing proposition. A successful asset protection plan is measured by how much less a future plaintiff receives as a result of the planning you put in place.

What Are Your Goals of Asset Protection?

Give us a call at 602-443-4888 to see if you qualify for our help. We can only take a certain number of cases, and we can’t help everyone. But if you want proven, effective protection of your net worth, we’re the law firm for you. We look forward to hearing from you.

ABOUT THE AUTHOR

Founding attorney Paul Deloughery has been an attorney since 1998, became a Certified Family Wealth Advisor. He is also the founder of Sudden Wealth Protection Law.

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