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:
- 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.
- 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.
- 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.
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