Here are some rules you should follow in setting up an asset protection plan:

Rule One:

Do not delay in implementing your asset protection plan. Many successful people are guilty of waiting until the last minute in getting something important done. And, in many cases, this isn’t due so much to procrastination but because you are probably a very busy individual who can’t find the time to sit with a planner and put together an asset protection plan. Although this is understandable, you should be aware that the longer you postpone or delay setting up your plan, you may find yourself in a situation where it’s too late to do so.

Rule Two:

You get what you pay for. If you want to have an effective asset protection plan set up, you have to go to an attorney who specializes in asset protection. Needless to say, a good asset protection planner’s services do not come cheap. You could go to an attorney that charges less, but you have to remember that he/she may be unqualified and, in the long run, cause you irreparable damage. So, if you want to save yourself future headaches, find an attorney with solid experience in setting up asset protection plans.

Rule Three:

The worse asset protection plan to have is one with you holding on to all of your assets. The best is one where your name is removed from all of your assets. You can find a middle ground between these two by talking it over with your planner.

Rule Four:

If you’re married with children, it’s best to remember that your family comes first. Therefore, it’s highly recommended that they are included in your asset protection plan through Limited Liability Companies (LLCs) or Family Limited Partnerships (FLPs).

The final piece of advice is don’t delay! Remember, trying to implement an asset protection plan after you are being sued will not protect you from that impending lawsuit. It would be very disheartening for anyone to know that they should have taken action and, because of their inaction, have put their hard earned money, property and other assets in jeopardy.

If you would like more information regarding asset protection, trusts, family limited partnerships or the subject of this article please call or email our office.