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Regardless of how secure you feel with your properties and assets, it is always best to be prepared from some unexpected damages or lawsuits that may leave you without any leg to stand on.
At present, as the world becomes more litigious, your properties and assets could be the main target for those who want to take advantage of the legal system by profiting in some way. You have to be proactive about protecting your properties and assets to ensure you are safe from any possible threats.
If you want to know how to protect your assets and properties, there are many ways to do it and these include the following:
1. Invest in the Best and the Right Insurance for Your Properties and Assets
More often than not, many people overlook this. If you have lots of properties and assets, you should pay importance to choosing the right and best insurance suited for them. Aside from finding the most reliable insurance company, you must also do your best to check the available coverage options.
You must have insurance for all of your assets, including automobile insurance and homeowners insurance. If you are confused with the options or you already have insurance but you’re not knowledgeable about your coverage options, you have to look for a lawyer in your area who can help you review your coverage to ensure that your assets are protected from any possible problems, as well as for you to invest in the right type of insurance.
2. Establish a Business Entity
If you have a business, regardless of its size, it is important to know the ways to keep it secure and safe, especially your liabilities. It is essential to separate all your personal assets from your business assets. It means considering establishing a business entity like a corporation or partnership.
If you operate your business as a sole proprietor, it’s actually a good deal of personal liability. If somebody comes for all of your business assets, it can quickly spill into your personal assets since there’s no official separation between the two. In order to establish the best possible business entity for your situation, you have to speak to a tax professional or an accountant.
3. Review the Titling of Your Properties and Assets
One of the ways properties or assets are seized is through titling. You must review the titling of your properties and assets to ensure that they are protected. There are some states with titling exemptions and you’ll have to review the individual state laws to know the most ideal plan for your case.
Determine how your house is titled. If you own a house with your spouse as tenants by entirety, you and your spouse own an inseparable interest in the house. If one of you is named in the lawsuit, the creditors can’t force your spouse to sell the interest in the house. Since the interest can’t be divided, it can protect home equity where state laws don’t provide particular homestead exemption.
Thus, the way you have properties or assets titled may have profound ramifications in case creditors make an attempt to seize it. Consult a lawyer about the specifics of your concerns when it comes to the titling of your assets and properties.
4. Separate the Cash
Separating the checkbook and bank account for your business is important if you want to keep a corporate veil. Keep the name of your company on each document and see to it that the records of the company are well-maintained for the future of your business. Log every minute and separate the cash so that your business will be managed properly and all of your assets are protected.
Oftentimes, startup businesses make the mistake of putting all of their business expenditures with their personal expenses. Once this happens, there’s a gateway to exposure. Ensuring that cash is separated is important for your business to continue safely and properly.
5. Use International Asset Protection
Another thing you can do to protect your properties and assets is by incorporating plans, which reach international jurisdictions, as well as offer greater privacy and protection levels. The addition of procedural and legal obstacles is frequently effective in discouraging overzealous creditors. The best thing about international plans for asset protection is that they warn the creditors that all things held within them are tough to acquire. Frequently, that’s enough to discourage ardent plaintiffs.
On the other hand, plans for domestic asset protection provide good protection by making obstacles for some creditors to overcome. But, generally, international entities are considered superior for the reason that in order to make claims against the assets held internationally, creditors need to navigate the offered protections through domestic jurisdictions. Moreover, they have to comply and contend with the country’s laws and regulations where the entities were created.
Bottom Line
In terms of protecting your assets and properties, you should consider it as one of your main priorities. The earlier you check your situation for possible weaknesses and errors, the earlier you will feel comfortable that you’re well-protected. Avoid making yourself a main target for potential litigations and frauds.
Consider consulting a reliable lawyer and review the laws and regulations in your country. With this, you can be assured that your assets and properties are protected.