In a financial sense, everyone can be defined by what assets they possess. These assets can come through a variety of ways. It does not matter how you came into these assets, assuming they were legally obtained. These assets are very important not only to yourself but your entire family. Whether your asset is an estate, money or business it needs to be protected. In the case that you may ever be sued, you want to make sure your assets cannot be taken away from you. Something as simple as a car accident could cost you your assets. There are ways to alleviate the risk of that happening by taking steps to ensure that your assets are protected.
It may seem obvious or simple but liability insurance is a great way to protect your assets. It is recommended that you have your liability insurance cover whatever your net worth happens to be. If you are about to come into money by any means, but for our purposes an inheritance, you should increase your liability insurance by that amount. If you happen to inherit Aunt Sally’s estate worth $300,000, it would be a great idea to increase your liability insurance $300,000. You protect yourself from losing the property in the event of a lawsuit.
Keeping Assets Separate
This will probably be a touchy subject for those that are married but separating assets is a great way to protect them. Something as simple as a joint bank account can potentially cost you at least half of your assets. A divorce can complicate these issues further. For some people, it is a good idea to keep your accounts separate from your spouse.
Protection From Renters
If you own a rental property, there is potential that renters could go after your assets. Creating an LLC or Corporation can protect you assets from a disgruntled renter. Your LLC or Corporation allows the separation of your personal assets from the rental property. If they sue you, they can only seize assets of your LLC or Corporation that run the rental property and none of your personal assets.
This may seem scary that your assets could be taken from you but it is something you can take steps to avoid. All of us have assets and wish to keep them safe. We can help you do so!
We at Safe Retirement Solutions can not only help you protect your assets but plan your retirement in a way that allows you to enjoy your retirement to the fullest extent. Please call us if we can help answer any questions or alleviate some of your concerns at 410-266-1120.