Whether it be estate planning, elder law, business planning or other circumstances, the attorneys at Davidson Law Group are here to ensure that you and your family stay in control of your assets. In today’s blog, we look at a few rules to think about regarding wealth protection planning.
Have Proper Liability Insurance
The first line of defense should be insurance. Make sure that your personal liability coverage is at least equal to your net worth. If you are inheriting 3 million dollars from a relative, call your insurance agent and request a 3 million dollar liability policy.
Financial Goals Should Include Asset Protection
As you set financial goals, you will learn about your current and future income sources, how much you need to retire, and how much will be left for your heirs. Once goals have been examined and a plan is in place, you can review your current assets to determine if they are exempt from creditors. If they are not, then we can help reposition them to become exempt. A financial plan will also allow you to position future assets to be protected from potential creditors.
Review All Jointly Held Accounts
Any money you deposit into a joint account with your children, elderly parents, roommate or business partner is at risk. If the joint owner incurs a tax lien, files for divorce, or is subject to a negative lawsuit judgment, the entire account will be put at risk.
Don’t Start Too Late
Don’t wait until a lawsuit has been filed to start the wealth protection process. If you start planning wealth protection after a suit has been filed, or even if one is about to be, then you are exposing any asset protection planning that you attempt to attacks from creditors and reversal by a judge.
Related Post: When Should I Start Estate Planning?
Davidson Law Group Can Help
Estate planning is extremely important. Whether your estate is large and complex or small and simple, it is not something you should enter into without professional advice and consultation. If you are interested in learning more about the specifics of estate planning and wealth protection, contact Davidson Law Group today.