While this may sound like the realm of just the truly wealthy, asset protection is something that people with a nice home and a couple of cars should consider, particularly if they can imagine being sued.
Sometimes it’s not the thought of transferring our assets that first moves us toward proper planning, but the thought of preserving our assets long enough to be transferred. So does asset protection really work? And what exactly are you protecting your assets from?
The topic of asset protection was picked up not too long ago over at the New York Times, specifically from the point of view of a lawsuit in the like-titled article “Safeguarding Your Assets Against the Hazards of a Lawsuit.” Add to that the fact that legislators just structured new statutes creating the new Virginia Domestic Asset Protection Trust or DAPT and you can accurately conclude that this planning is alot more commonplace than you might have thought.
It should be said that insurance can be your first line of defense, and there are as many types of insurance as there are risks. This is a product where one person literally buys piece of mind (assuming you trust your broker) and pays another to accept their uncommon liabilities and costs in exchange for common payments. But insurance only does so much since it simply transfers liabilities without eliminating them, and it doesn’t work proactively on its own; you need to structure your assets. This is precisely the activity that generally runs under the banner of “estate planning,” but it’s important not to pigeonhole one or the other. Proper planning is an ongoing activity in life to further your life goals.
If you have particular concerns or you’re prone to specific risks, asset protection planning for your estate can help ease your worries. You can learn a bit more from the original article, but in the end your individual circumstances and consequent risks will determine a suitable asset protection plan for you.
You can learn more about this topic as well as other strategies on our website under the tab entitled: asset protection in Williamsburg, Virginia . Be sure you also sign up for our complimentary e-newsletter so that you may be informed of all the latest issues that could affect you, your loved ones and your estate planning
Reference: The New York Times (November 2, 2012) “Safeguarding Your Assets Against the Hazards of a Lawsuit”