Most fathers seem to innately worry about the financial future of their family. They might not understand how to properly organize them even when they already have sufficient assets to protect their loved ones.
A common question might be whether or not assets should be handled on your own or turned over to a professional. If this is something you have wondered about yourself, perhaps the following information could help:
Asset Protection Warnings
Before you take on the daunting task of handling your own assets, review the following:
Watch out for the risks
If you are a professional, such as a doctor, lawyer or dentists, your job might place you at risk. You also expose yourself to loss of assets through the following: contract issues, lawsuits, bankruptcy, divorce and other scenarios.
Consider complex tax and legal issues
Tax regulations, which are constantly changing, could leave you exposed to a possible attack on your assets. Both state and federal laws impact asset protection, and a professional can help you wade through these complicated matters.
Each state has its own regulations
While some states provide homestead protection, not all do. Insurance coverage varies according to where you live and the amount of assets involved.
Trusts have limitations
While they work in basic cases, they might not protect all of a business owner’s assets. Let a professional guide you through these murky waters as the laws vary by state.
Consider possible complicated business decisions
Asset protection firms can properly organize your business, make tricky asset moves and implement long-term plans that an untrained person won’t know about.
What to Look for in Asset Protection Kits
Now that you have decided to take asset protection more seriously, you might consider picking up an asset protection kit. But are they scams or will they work for you? Your asset protection kit should contain a minimum of the following:
- Informational materials,
- Specific instructions on how to analyze your assets,
- Details on asset structuring,
- Directions for drawing up basic legal documents that a lawyer can review later and
- Access to professional support from attorneys.
However, most asset protection kits do not provide these basics, so examine any kit closely before you invest in one. You might decide that you do not want to risk the safety of your assets to the use of a kit. Instead, you would rather depend on someone who has the experience and reputation necessary to provide you with the necessary protection.
Seek Professional Guidance
If you have a strong background in accounting or as a tax lawyer, you might have the requisite expertise to set up proper asset protection strategies. However, most people need professional advice. Malpractice insurance, long thought to offer great asset protection, likely won’t protect you in certain cases. Exclusions leave gaps in coverage, and some lawsuits exceed liability limits. More insurance might just make you a magnet for litigation. Instead, talk to a professional who can provide insight on ways to protect you.