The majority of people spend their entire lives accumulating assets and property. They do so with the intention of leaving these assets and property behind to their loved ones.
Unfortunately, without a solid estate plan, your assets may not go to your selected beneficiaries as you intended. Even worse, a simple lawsuit could threaten your financial independence now.
To help you understand how to best protect your estate, we have compiled some of the best asset protection tips. These tips can help you protect your assets from creditors, lawsuits and lengthy probate after your death.
Tip One: Get Liability Insurance
One of the best ways to protect your assets from creditors and lawsuits is to purchase liability insurance. Umbrella policies, as well as home and auto insurance policies, will pay for monetary damages during a lawsuit. However, for this insurance to make a difference, you should raise the policy limits as your net worth increases. Therefore, every year, check your policy and ensure that you have the benefits you need in case something catastrophic occurs.
Tip Two: Maximize Your Retirement Contributions
Second, if you contribute to an IRA or 401 (k) plan, then you are in luck. This is due to these funds enjoying protection from creditors during bankruptcy. Thus, you should maximize your contributions to keep this money safe and out of the hands of any creditors. While not every company offers a retirement plan, you can still invest in an IRA. For more information, contact an asset protection lawyer to examine all of your retirement options.
Tip Three: Consider Forming an LLC
Finally, if you own rental or investment real estate, then you should consider forming a limited liability company (LLC). Doing so can protect your assets if something goes wrong. Also, when you own property, you may need to consider two separate types of liabilities: inside and outside liability. For instance, inside liability is when a creditor wants to seize an LLC member’s personal assets. Fortunately, creating an LLC will limit your inside liability to the value of the property when legal claims arise. This will help keep your assets safe from potential litigation and liability.
Contact Our Highlands Ranch Asset Protection Law Firm
When looking to protect your estate, never overlook asset protection. Protecting your assets is important and necessary in order to safeguard your estate.
That is why we offer competent and skilled legal help every step of the way. Contact a Highlands Ranch asset protection lawyer at Skipton Law, LLC today at (720) 770-3880 or complete our online form for more information.