Running a family business is not for the faint of heart. You've worked hard and made difficult decisions for the best of your company and your family. Despite your best intentions, your business may still be at risk for failing.
The fear of losing your family business is not uncommon. Investments, lawsuits and other actions can take a significant toll on your wealth and the success of your company. What can you do to protect your family? Take advantage of asset protection planning.
What is asset protection?
Asset protection can protect your wealth and property in the event of a lawsuit against you, your family or your business. Lawsuits can result from foreclosures and other accusations of negligence that are difficult to protect against unless you have a plan ahead of time.
Asset protection does what the name implies: it protects your assets in the event of a creditor claim or lawsuit. It works by changing your assets that would be subject to a creditor in a claim to exempt assets, which means they are not able to be taken as a result of a lawsuit.
Plans can be tailored to your needs
Asset protection planning can be tailored to your individual needs. This means what works for another family may not necessarily work for you. This is why is it important to work with your attorney to discuss all your options to create a plan that will properly protect your wealth.
Asset protection plans may include property and liability insurance policies, financial plans and estate plans. Each part of your asset protection plan should work together to protect your immediate and long term financial goals. Due to the specific nature of these plans, it is best to consult your attorney to create an asset protection plan that will work for your needs. Do not wait until you are facing a lawsuit - by then it will be too late. Plan now to protect your future.