It’s important to have a protection plan in place for your assets — not only for safeguarding your wealth but also to ensure continued financial stability for your loved ones for years to come.
Fortunately, there are plenty of ways to protect your properties and other assets. You may need several of them for comprehensive financial protection.
Here are some helpful ways to secure your hard-earned assets.
- Prenuptial Agreement: Known as a "prenup" for short, this legal document completed prior to marriage can help you establish who gets what properties, accounts and other assets if you and your spouse separate.
- Irrevocable Trust: Trusts are a good way to shield your assets from liability or claims from creditors. You can also use trusts to pass on assets to your heirs.
- Limited Liability Company: You can use a limited liability company (LLC) to protect business assets or investment properties from liability by keeping them separate from your personal assets. There may be tax advantages to working under an LLC as well.
- Insurance: Depending on your specific risks, you may want umbrella insurance, which covers excess liability and can protect you from certain lawsuits. An umbrella policy may be particularly useful for anyone who owns rental properties.
- Joint Ownership: Establishing your properties as joint-owned with rights of survivorship can ensure the properties you own go to the right person in the event of your passing without probate. It can also simplify property ownership for your heirs.
- Offshore Trusts and Business Entities: These options can help you separate your assets from domestic liability and creditors. Make sure you consult a financial professional if you’re considering moving assets this way, as you will need to comply with certain laws.
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