What Is the Importance of Asset Protection

Running a business, working in certain professions, or seeking credit can have some significant drawbacks. Of these, one of the most dreaded is asset loss which a lawsuit from a creditor or any other disgruntled party can bring about.

The best way to ensure your hard-earned wealth is not affected is by having an asset protection plan. Here are a few reasons to consider asset protection and insulate your wealth from lawsuits and creditors.

What is an Asset Protection Plan?

An asset protection plan is a suite of legal strategies enforced before a claim or lawsuit arises to deter the claimant from seizing your assets. It ensures that an individual or business owner will not lose their most-valued property in such a scenario.

Enforcing an asset protection plan early is the best bet since most plans get stronger the longer they’re in force.

The Importance of Asset Protection

Here are a few compelling reasons you should have an asset protection plan.

Ensure Business Continuity

Asset protection provides an excellent means of ensuring your business is not affected by lawsuits and creditors. Enforcing asset protection for your company prevents creditors from seizing crucial company assets, thereby protecting core business operations.

Creditors will only have access to a regulated portion of your business’s assets, thus ensuring business continuity and better settlement terms in case your business defaults on a loan or credit.

Opportunities to Diversify Your Assets

Using offshore accounts to protect your assets presents several new opportunities to diversify your wealth. Often, if you keep your assets within the U.S. market, you may experience some trouble investing in certain markets, restricting your wealth portfolio.

A robust offshore asset protection plan has fewer restrictions since it’s typically detached from the American legal system, with more freedoms and excellent tax incentives. 

For instance, Caribbean nations incentivize investors to keep their assets within the country with a variety of tax incentives that can save investors a lot of money. A word of caution: it is important not to do business in a foreign country that reports to the USA or that will have you paying taxes on your Worldwide Income!

If you would like to have the best of both worlds, The Second Estate offers a program where you can have ALL the benefits of being offshore and NEVER have to actually go to another country! That is right….Your assets can stay in the great USA and still have the same protections, without any of the uncertainty. Ask us how…

Confidentiality

Asset protection plans keep your assets confidential and detached from the fiddling hands of creditors and American wealth management systems. Your assets are more protected and kept under wraps from prying eyes that might want to measure and seize them if you default on credit payments or get into a business dispute.

Safeguard Against Legal Threats

Anyone can sue a business, its owners, or an individual if they feel their rights have been violated. In these cases, you stand to suffer significant asset losses if the lawsuit is upheld and you’re forced to pay damages.

Asset protection ensures you don’t lose your assets from malicious lawsuits or the heavy financial burden of lawyers and other legal fees.