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With the ever growing trend in America towards identity theft and frivolous lawsuits you must take steps to protect your personal and business information and assets. Proper asset protection strategies are critical to a secure, a well-protected future for you, your business and your family.
Asset Protection is the concept of protecting one’s possessions from frivolous, ill-motivated, illogical and, more often than not, devastating claims that can destroy your current and future lifestyle. If you are engaged in any business activity, chances are that sooner or later you will be sued. The costs of defending a frivolous law suit can easily reach $100,000 and up. When you are sued, everything you have worked hard to create will be placed in jeopardy.
Lawsuits have become the plaintiff’s number one negotiating strategy. Lawyers have found that, for a small court filing fee, one of two things will likely occur:
- You give them the money to go away.
- They’ll keep you tied up in court for between two and five years.
In either case, the money comes out of your pocket. If fortunate, you will win the case – but at what price? Your defense bill could easily run up to six figures. It seems that even if you win, you lose..
Who can’t wait to sue you?
A partial listing, by no means inclusive:
- Employment lawsuits: age discrimination, racial, gender, pregnancy, disability, mental illness, addiction discrimination, sexual harassment, peer harassment, wrongful termination, employee injury, etc.
- Professional malpractice: medical, legal, psychological, engineering, architectural, accounting, etc.
- Business liability lawsuits: environmental cleanup, dissatisfied customers, personal injury, shareholder liability, etc.
- Personal lawsuits: divorce, business partners, creditor claims, accidental injury caused by a family member, personal injury, etc..
How to get asset protection
Every asset protection plan will look different but the starting point looks about the same. The strategies below provide protection and can be customized to meet your specific needs and goals..
Forming an LLC or Corporation for your business
In the age of freelancing and side-hustles, it’s easy to think you can start a business free and clear without incorporating. But if you want to legitimize your business and protect yourself from lawsuits, incorporating is the best decision you could ever make.
As a freelancer or sole proprietor, there is no separation between your business and personal assets. That means if you’re ever targeted by a lawsuit (and lawyers love targeting small business owners), you risk losing EVERYTHING—your savings, home, retirement and other personal property.
By forming an LLC or Corporation, you protect your personal assets and safeguard yourself from being personally liable for debts incurred..
Revocable Living Trusts
A Revocable Living Trust (RLT) provides long-term financial planning for you and your family and protects your personal assets by helping you avoid the hassles of probate.
Probate is a legal process for settling claims against the decedent and for distributing the decedent’s assets. For example, probate in Nevada takes a minimum of 150 days. If there is real property to be sold, the probate could take one year or more. And despite what you may think, a last will and testament isn’t enough to protect your assets, even if the decedent is married and all of his or her property is community property.
Having an RLT also solves the problem of decedent’s who have many of their assets in real property. It’s beneficial because the probate legal fees, costs and federal estate taxes have to be paid in cash, but decedent’s who have their assets in real property tend to have very little cash. Without an RLT, this situation may require that the Executor of the probate estate sell a parcel or parcels of real property in a very short period of time. Such quick sales almost always result in a steep discount.
Last but not least, RLTs solve the problem of insurance. Most insurance is sold to provide for the surviving spouse or for the children of the parents in the event that both die. However, an examination of the costs of probate may result in a large portion, if not all, of the insurance being used to pay such probate expenses and tax. You don’t have to worry about this with an RLT.
So, save time and money and protect your assets, while ensuring your final wishes are completed as you prefer, with an RLT..
Get protected today!
The key to preventing lawsuits is to make sure that plaintiffs and their lawyers can’t get their hands on your money. Inc Authority will show you how to become every contingency fee lawyer’s nightmare.
Form an LLC/Corporation today or an RLT to protect your assets. Now is the time to get serious about providing the highest level of protection for you and your family.
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