When it comes to asset protection planning, clients aren’t looking to hide their assets, they simply want legal, valid tools that help preserve their family’s property. What tools are available for asset protection, particularly for small business owners, as part of a comprehensive estate plan?
1. Liability Insurance
The most often used asset protection strategy is obvious, but quite often overlooked by the small business owner. That strategy is simply to have enough liability insurance in place to protect your wealth – particularly in the case of family businesses or small businesses in high-risk categories, such as doctors.
2. Professional help
Use the professionals to help organize assets and make sure you maintain the legal formalities of your business entities including tax returns, meeting minutes and bank accounts. Trying to save money by handling some issues on your own may cost you more in the long run, and asset protection is definitely not a do-it-yourself prospect – particularly when it comes to the legal aspects.
3. Burning Bridges
Co-mingling property, such as a bank account or even with the use of a vehicle, between business and personal use creates a ‘bridge’ between your business property and personal property, which can leave property vulnerable to lawsuits and creditor claims.
When it comes to asset protection, you must work with an asset protection attorney to preserve your family’s wealth. By wealth, this certainly does not mean only the wealthy need asset protection. In fact, it is often the modest income or smaller business owners that can make the most of asset protection strategies.
If you have questions about the information above, contact our law firm at (732) 238-6000 to learn more about establishing a foundation for moving forward. We will ensure that you implement an asset protection plan that suits your every need.
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