You’ve worked hard throughout your life and build up wealth that you want to ensure makes it to the next generation. While estate planning is a large part of passing on your wealth, it’s not the only component of a successful strategy. Asset protection is an element that you simply don’t want to forget.
What is asset protection?
Asset protection is a broad term given to the actions of financial planning that are intended to protect a person’s assets from creditor claims. There are many different strategies that you can use to protect your assets, such as purchasing a deposit and securities insurance policy.
Insurance is a good place to start
While the term asset protection may seem like formal financial lingo, you probably have some form of asset protection already in place for the property in your life. Insurance is the most common type of asset protection out there. You’ll want to have liability coverage for your car, home and business. It’s important to ensure that the coverage is enough to protect your financial well-being in the event of an adverse incident.
Setting up trusts and transferring assets
Once you get your insurance policies up to par, it’s time to head to your lawyer’s office. They may assist you with determining the best possible asset protection for your estate. This may include setting up a trust to control your assets. Alternatively, this may include transferring some of your existing assets to your spouse or children.
Asset protection is an essential part of any estate planning process. There are many different strategies that you can utilize to provide an added layer of protection for your assets. It’s a good idea to consult an attorney to discover what the best strategies are for your situation.