{"id":41705,"date":"2022-04-01T14:37:17","date_gmt":"2022-04-01T18:37:17","guid":{"rendered":"https:\/\/ilgfinancial.com\/staging\/2370\/?p=41705"},"modified":"2022-05-26T21:27:20","modified_gmt":"2022-05-27T01:27:20","slug":"asset-protection-strategies-worth-knowing","status":"publish","type":"post","link":"https:\/\/ilgfinancial.com\/staging\/2370\/asset-protection-strategies-worth-knowing\/","title":{"rendered":"Asset-Protection Strategies Worth Knowing"},"content":{"rendered":"

\"\"If you own substantial assets or are coming into a sudden windfall, such as an inheritance, proceeds from a lawsuit, stock options sale, or business sale, there are some money moves you might look at for protecting your newfound wealth.<\/p>\n

Your first line of defense against potential litigation will likely be insurance in the form of an \u201cumbrella policy.\u201d Your financial professional can help with the right coverage but be prepared for a policy that\u2019s at least equal to your new net worth. Getting liability insurance is generally a relatively inexpensive way to avoid losing significant assets in lawsuits.<\/p>\n

The manner in which you own your property is worth a conversation with a financial professional. Different situations will determine if it\u2019s best to keep your newfound wealth in a joint account or separate. In many states, a form of joint ownership known as \u201ctenancy by the entireties\u201d means that property owned by both spouses can\u2019t be partitioned.5 Loosely explained, if your spouse is sued or a creditor comes after them to satisfy a bill, under most circumstances they can\u2019t seize jointly-owned assets to satisfy the judgment.<\/p>\n

Protect yourself from personal liability in the event of an unexpected lawsuit. For example, consider creating a business entity that can help shield your assets if you own rental property. Your personal assets are for the most part protected if you find yourself in a lawsuit. However, an LLC can only protect assets related to its purpose. So, if you put your personal residence in the LLC and a guest is injured, it wouldn\u2019t protect you from liability because your home has no business function.<\/p>\n

Protect your assets from your creditors and the creditors of your beneficiaries by setting up irrevocable or lifetime marital trusts. This process comes with specific rules, so work closely with the right advisor during setup.<\/p>\n

Protecting what you own is important and doing it correctly is even more important, so if you\u2019re expecting an influx of money, it\u2019s time to talk. We may be able to help or point you in the right direction, so call us today at (540) 720-5656<\/a>.<\/p>\n

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