Asset protection planning or protection is not just any simple kind of business or life planning but is an art which has to be mastered only after making a few mistakes. Asset protection is not as much about the right planning but the right timing. You must know when to hire an asset protection attorney: before crisis occurs or after it has hit you. There are some rules which one must learn when going for estate and trust planning or before opting for probate services as a part of asset protection. The following are the top of those rules:
1. Start planning before claims
One of the top rules of proper asset protection is to start planning before a liability arises. When people start the planning process after they have suffered a loss, the effect is not as great as it could be.
2. Planning late can backfire
You must remember at all times that delaying the process of asset planning generally backfires and can make matters worse. When you start gathering the fallen chips, you can end up losing some more.
3. Asset protection planning is not equivalent to insurance
Another rule which you must know about asset protection is that this is not a substitute for insurance and it never pays legal fees to defend you against a legal case or lawsuit.
4. Personal and business assets are different
Many people consider their business entity a trust for personal money but this must be avoided at all costs. Make sure you keep both as separate from one another as possible.
5. Avoid controlling a little too much
You must remember that too much control can prove to be a bad thing rather than a good thing for you. You must know where to draw the line as when you go overboard, things can actually go messy and tangled up.
6. Choosing a simple plan works well.
Some of us get tangled up in complicated asset protection plans and packages and are unable to explain them to a legal entity when required. Always remember to go for simple plans which you can understand and even explain. The transfers and structures should be straightforward and uncomplicated in every sense.
7. Bankruptcy laws have changed
At some point in the past, bankruptcy actually had a silver lining, but not anymore. The laws of bankruptcy have changed considerably and these laws can now leave debtors bone less and cold. Due to these laws, there are several aspects of asset protection which are difficult to secure
8. Asset protection planning and estate planning don’t gel well
Remember that tax and estate planning, and asset protection planning don’t always gel all that well together. So the best idea is to keep them separate from one another to the largest possible extent.
So if you have got these rules and wish to move towards asset planning, you can log on to LorrenT.Johnston and opt for a reasonable priced service.
