If you are a person who is well known in business, if you are a service company, or if you are a provider of multiple items for many types of people, you are likely to be in a high-risk category for being sued. In previous articles, we have discussed who is at risk for a lawsuit more often than others, and how you can cut back on those risks, but in this article I am going to go more into detail about your self protection for your assets.
All over the world there are all types of people, some who will ram your car to get money out of your insurance, they will fall in your store to make a buck or two, and there are other instances where something could go wrong in your business or in your personal life leaving you in a situation where you could be up against a lawsuit.
To prevent problems in your financial future, putting your assets in places or names where you are not running a risk of losing everything, I am going to give you a few ideas on how to handle what you have now.
What is important to remember is that you should spread your assets around, using these various tips and ideas. It is never a good idea to put all of your ‘eggs in one basket’ so to speak, so that if something else would happen, you do not stand to lose all of the assets that you have as well. Use a variety of these tips and ideas for the best results.
Protecting your assets for your children’s futures. If you are leaving your children a large sum of money or assets upon your death or retirement, you should set up some type of specialized trust so that you can leave your assets and your money to your children. What this is going to do is prevent anyone who sues your children from taking that money.
The type of trust that you want to set up is a bloodline trust, one that will only allow money to be released to a relative that you set up. This same bloodline trust prevents children who get divorced from having to share the money and assets that you left them to split with the ex spouse.
Some people may not realize it but if you have been paying into your life insurance for years and years, you might have a cash value on your life insurance policy. In some areas of the world, if you are being sued, you can be forced into taking out that money to pay off your debts for those who have sued you. In some areas of the world, life insurance policies are protected from lawsuits, but you need to be sure what your area laws are.
In discussing the life insurance policies, and the monies that could be built up in the life insurance policies, it is also important to think about monies that you have in a pension or in retirement accounts. Find out what type of retirement or mutual fund you have and if you were sued if these assets could be forcibly taken from you.
Continued >> on the next page
