If you are looking to protect your assets, then scheduling a consultation with your asset protection attorney should be the first thing that you do. An asset protection attorney will be able to help you make the best decisions when it comes to doing what is best for your assets. Those who come into wealth unexpectedly often do not know what to do with their new found wealth. An asset protection attorney will help you to protect those assets, as well as yourself, in case you later face a lawsuit. The following are six strategic tips to help you protect any assets that you may have come into. Contact your asset protection lawyer with any further questions that you may have.
Look into Increasing Your Liability Insurance
Your insurance broker will be able to help you increase your liability insurance if you choose to do so. Your asset protection lawyer will recommend that you increase your liability coverage to match the amount of your new net worth; however, you can opt for more if you choose to. Liability insurance is the first step in protecting yourself should you face litigation at some point. If you know that you will be receiving a large sum of money, it is best that you contact your insurance agent before you receive it to discuss your coverage options.
You May Want to Keep Your Assets Separate
In some states whatever funds are in a joint account belongs to both parties on the account. This may not be an issue for your situation. However, this can become a problem if you plan on giving the money away to your children as an inheritance later or if you are divorcing your spouse. An attorney will be able to help you keep your assets separate for your spouse’s if that it what you chose to do.
Be protected If You Decide to Rent Out Properties
If you decide to become a landlord with your new wealth, your asset protection lawyer will recommend that you protect your assets from the renters. You can protect yourself by creating a business entity such as a corporation that will help to shield your personal assets. If your renter decides to sue you for whatever reason, then they will be able to go after your corporation but your personal assets will still be protected. If you have more than one rental property, then you may want to consider creating more than one business to handle each property.
Make a Point to Go Over Any Joint Accounts You Have
Any funds that you place into joint account you have with your spouse, children, business partner, or whomever could be a risk. Any money that you deposit into that account could be at risk if the other person on the joint account goes through a divorce or a lawsuit. Your funds could be used to pay for these. It is recommended that if you do keep a joint account that you keep the balance as low as possible.
Make Informal Partnerships Formal
What you may not realize is that you are responsible for the actions of your business partner. If your business partner is facing a lawsuit, then your funds are at risk of being lost. If you have an informal partnership with someone and they are responsible for an accident while on the job, your funds could be used to settle the lawsuit. The best thing to do in this situation is to form a corporation and eliminate the partnership. A corporation will protect you legally.
Use Business Entities to Help Shield Your Assets
If you are the sole proprietor of a business, then you do not have to worry about the actions of a partner putting you at risk. However, your assets could still be at risk if you are sued for any reason. The best thing to do in this situation is to create a formal business. A formal business will help protect any of your personal assets if you are sued.
Consult an Asset Attorney for Assistance
A sudden monetary windfall can be a life-changer. It can vastly improve your life, as long as you have your assets protected. Protecting your assets will assure that you will get to keep them to use for yourself, rather than to pay out lawsuits. Remember that the more assets you have, the greater risk you are at to lose it. Contact an attorney to help protect your new assets. For a professional who will help you with your assets, contact your local asset protection attorney today from Sutton Law Center at (775) 824-0300. Sutton Law Center has the asset protection attorney who will help you safely invest your assets and protect you.