3 Key Tips to Help Business Owners Protect Their Assets

Most individuals who establish a significant amount of wealth or start their own business put a lot of time and effort into building that asset. What they don’t always do is put that same amount of time and effort into protecting that asset. Why? If you have something of high value, you definitely want to have a plan in place to keep it protected no matter what should occur.

There’s a reason they used to built moats around castles in medieval times. They were castles. They were valuable. There were a lot of people who wanted to overtake them. The goal of the moat was to stop them; to put a protection in place that kept people from getting to that valuable asset and taking it away. In essence, this is the same thing you want to do with your wealth or your business.

Protecting Your Most Valuable Assets from Potential Liabilities

According to the resource available for download below, while 86.3% of successful business owners say they are concerned about becoming the object of unjust lawsuits or being victimized in divorced proceedings only 27.5% have a formal asset protection plan in place . This is a significant disparity.

To many people, putting these protections in place may seem like something you can put off… until something happens. Once a lawsuit has been brought against you, there’s not much you can do. You can’t go back and dig the moat after the castle has already been stormed. The time to protect your business is now.

Here are a few tips to better protect your assets:

1. Make sure you cover the essentials – At the very least, try to cover as many major liabilities as you can. One option might be to get a large umbrella policy that covers multiple assets. Another strategy is to put some assets in another trusted individual’s name. That way if you are sued, those assets likely cannot be touched.
2. Explore advanced strategies – There are numerous options to consider when it comes to asset protection. Some potential strategies to consider include equity stripping, captive insurance companies, and onshore and offshore trusts. If and how these strategies will work for you depends largely on your specific situation.
3. Work with the right professionals – Having knowledgeable and trustworthy financial advisors and attorneys on your team can make a big difference when it comes to ensuring your assets are protected both today and down the road. Make sure you are working with professionals who are familiar with your situation and the financial protections you need.

You’ve worked hard for what you’ve earned, whether that’s your business or wealth. Make sure you take the time and effort to put the right protections in place to safeguard those assets so that—no matter what the future may hold—they can’t be taken away from you.

Need some guidance ensuring your assets are protected? Talk to Wealth Impact Partners today and we’ll help walk you through the process.

Disclosures:

The material contained herein is for informational purposes only and is not intended to provide specific advice or recommendations for any individual nor does it take into account the particular investment objectives, financial situation or needs of individual investors. Any tax advice contained herein is of a general nature and is not intended for public dissemination. Further, you should seek specific tax advice from your tax professional before pursuing any idea contemplated herein. This advice is being provided solely as an incidental service to our business as insurance professionals and investment advisors.

Neither Wealth Impact Partners, Valmark Securities nor its affiliates and/or its employees/agents/registered representatives offer legal or tax advice. Please seek independent advice, specific to your situation, from a qualified legal/tax professional.

Securities offered through Valmark Securities, Inc. Member FINRA/SIPC. Investment advisory services offered through Valmark Advisers, Inc., a SEC Registered Investment Advisor. 130 Springside Drive, Suite 300 Akron, Ohio 44333. (800) 765-5201. Wealth Impact Partners is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc. BSW Inner Circle and AES Nation LLC are separate entities from Valmark Securities and Valmark Advisors.