3 Ways to Protect Your Personal Assets

Man and woman talking to their lawyer to protect their assets Even if you’re making loads of money right now, you can’t be sure that the winds will blow the same way in the future. When talking about asset protection for your properties and possessions in Utah or anywhere else, you’re talking about guarding your wealth. This is so that whatever happens in the future, you’re less likely to lose everything.

Protecting your assets is something you do during the good times, and not an afterthought you save for the bad times. Here are some tips on how to protect your assets:

Get Insured Against Liability

Don’t just get the minimum. On the contrary, increase your liability insurance until it’s at least equal to your net-worth. If your finances take a turn for the better, call your insurance broker and increase your liability limits again.

Get a Separate Account for a Windfall

This may work best if you have a lawyer. Instead of co-mingling your windfall by depositing it in a joint account you share with your spouse (effectively giving your spouse ownership of 50%), put it in a separate account. This is a good idea if you are thinking about divorce.

Form an LLC or a Corporation

If you’re a landlord, for instance, and one of your tenants slip on the apartment stairs and decides to sue you for millions. That puts all of your assets in jeopardy. The same is true if you own a small business and a customer sues you for something.

If you have a business partnership and your partner gets in trouble, your assets are exposed as well. If you form an LLC or a corporation, however, your assets are separate from the assets of your LLC or corporation, so they can’t go after your personal assets.

Going back to protecting your assets during the good times, the law will not be on your side if you know trouble is afoot so you decided to protect your assets. The law does not look favorably upon those trying to game the system. It is advisable to call your lawyer today and put protections in place, rather than ask for their help when it’s too late.