Asset protection is one of those areas of the law that few people have direct experience with, yet which is nevertheless very important for many people to consider. When you develop an asset action plan, you will create various tools that will allow you to shield your assets from people who are trying to take them. Developing an asset protection plan is something that takes the guidance and assistance of an experienced attorney who can evaluate your unique circumstances and help you create the tools that are most appropriate. However, if you have been considering asset protection and are not sure if it is right for you, here are several questions you might want to ask yourself.
Are you a business owner?
Whether you are a new entrepreneur, or run the family business that you’ve had for years, or even generations, business owners need to consider a wide array of asset protection issues. If a problem confronts your business, how certain are you that the problem will stay isolated? In other words, is it possible that the problem affecting your business could reach into your personal financial affairs? Could you put your personal wealth at risk if your business faces difficult times or is subject to a lawsuit?
Are you in a litigious industry?
Some people are more likely to be sued simply because of the nature of the industry in which they work. Attorneys, doctors, medical professionals, real estate developers, engineers, and others are much more likely to face a lawsuit in their lifetime than those who work in less litigious industries. If you work in a sector that is highly prone to lawsuits, developing asset protection plan is essential. If you don’t properly shield your assets from potential litigation, you run the risk of losing all that you have worked so hard to create.
Do you have a lot of assets?
Even people who do not own their own businesses or who are not in a litigious field can face a high likelihood of being sued if they have a lot of wealth. The reality is that even a simple conflict or problem can balloon into a serious issue for people with valuable assets. If you haven’t taken the proper steps to protect yourself, these small issues can cause serious damage to your personal wealth.
Do you have an asset protection plan that you’ve neglected?
Some people have realized the importance of an asset protection plan but have not done a lot to make sure their plan has been maintained properly. If you developed a plan and have not reviewed it in many years, you need to devote some time to doing so. Sometimes, having a bad plan can be even worse than having no plan at all.