If you have a car, a home, a 401K, or a business in your name, you own an asset. An asset provides economic value to an individual or entity and plays an important role in long-term financial planning (Investopedia).
Assets can be part of your estate plan and help you save for your retirement years, or be used to protect your family—should you no longer be able to provide for them.
However, even though you technically “own” an asset, it can still be taken away to help pay garnishment fees if you owe creditors. This may occur if you are liable in a lawsuit for personal injury, as well. The court may rule to seize your assets and use them to pay for the plaintiff’s medical expenses or other fees.
Losing everything you’ve worked so hard to achieve is a scary thought. But did you know that there is a legal way to protect your assets?
What Is Asset Protection Planning?
Asset protection planning, or asset preservation, is a process where individuals or entities reposition certain assets from nonexempt—meaning they are subject to creditors’ claims—to exempt (The Balance).
What is important to remember is that you are not allowed to begin the asset preservation planning process during a legal dispute. At that point, it may be too late. Therefore, strategic financial and estate planning should begin now, so you can help ensure you, your family, and their future is protected later.
How Do You Prepare an Asset Management Plan?
To begin the process, you want to identify all your assets and how you plan to benefit from their economic value. At Focus Financial, we can help you with this essential first step.
One of our experienced financial advisors will meet with you to review your current financial strategy and investments and discuss your future goals. This will allow us to determine how much you need to save to pursue those long-term goals and identify what type of sources of income (or assets) you may receive in the future and how it will impact that amount.
From there, we can evaluate your assets (current and future) and help you plan your estate to help ensure your property remains in the family or goes to the individuals or organizations you desire.
Asset Management & Protection
It’s important to note that because of the documentation and legalities involved in repositioning your assets—as well as designing an estate plan—you will want to work with a legal professional.
An error in filing could result in you losing your assets and putting your future at risk. To protect you and your family’s financial security, start this process early by scheduling a consultation with Focus Financial today.
Don’t leave your financial future in the hands of just anyone. Trust the professionals at Focus Financial!
To get started, contact us today!