THE BASICS ABOUT ASSET PROTECTION

Acacia Business Solutions is here to provide you with information regarding legal concepts, asset protection strategies, and tools that is easy to understand and follow. Our company is proud to have helped our clients protect millions in liquid assets, ten times that amount in real estate, and hundreds of millions in investments. Popular questions and topics that are discussed related to asset protection are address below.

FORMS OF PROTECTION

Many believe that asset protection is limited to trusts and legal entities. However, chances are that you already have at least one form of coverage against small vulnerabilities in your life. Of all the forms of asset protection, some of the more common include auto and homeowners insurance, and there is good reason for it. Something as common as driving comes with a very high level of risk. The way to protect your assets at the source of vulnerability is to not only be insured but have the maximum insurance protection available.

A few helpful tips are to try getting coverage for both your home and cars from the same provider. Also, purchase a single policy that offers liability protection in an auto accident. It is best to implement a full proof plan that will impede the success of a legal predator taking hold of your assets. One step would be to purchase/lease vehicles under your name. If you are an entrepreneur, it is advised to write off the vehicle expense, but do not put the title in your business™ name. Doing so puts you at high risk of having your business revenue and assets exposed to the legal system. By having this one form of asset protection, you are able to protect yourself against liability should an accident occur.

ADDITIONAL FORMS OF PROTECTION

• Bankruptcy Depending on the state you live in, bankruptcy protection will not only protect your home, it will also protect your investment accounts, IRAs, and 401Ks.
• Corporate Veil/Corporate Shield  A form of asset protection that will protect against business liability. Please note that you should not rely on this as your only form of coverage as it is not 100% effective. However, if you operate your company properly, you will have a substantial amount of protection that is offered by legal statutes in corporate law. For example, owning property under a Limited Liability Corporation (LLC) is excellent for protecting your asset, but if this asset produces some form of risk it may threaten everything that belongs within the same legal structure.
• Insurance For most, this should be considered your first form of defense. Insurance will allow you to purchase protection for known areas of risk such as driving or home/business ownership. Purchase as much coverage as you can so that if/when the occasion arises, your insurance company will defend you and your wealth against your legal opponent.