Everyone Needs Asset Protection – Even You!

Everyone needs asset protection, not only surgeons and others that face unusually high risks. We live in a litigious society and the political winds in Washington won’t change that. Asset protection planning can be a wide continuum and you need to determine how far down that path makes sense for you to proceed. Everyone should have adequate property, casualty and liability insurance. As you get closer to or in retirement it is important to protect what you have as it will be more difficult, if not impossible, to earn dollars you might lose in a lawsuit or other claim. Divorce can wreak havoc with financial goals. If you gift or bequeath assets it should be in irrevocable trusts that provide protection for your heirs from divorce, malpractice claims and other risks. Businesses should be operated in entities to protect your non-business personal assets from a business claim. Real estate rental properties should be in LLCs or other entities to limit claims on that property from reaching other properties. For those with greater wealth and higher risks layering entities and irrevocable trusts may be advisable.