ASSET PROTECTION: WHAT IS IT AND WHY DO YOU NEED IT?

The old adage “an ounce of prevention is worth a pound of cure” holds true when it comes to the topic of asset protection. Before you even realize what’s happening, creditors could be at your door, using the law to commandeer your hard earned assets. With the correct estate planning tools and the right financial partner, you can steer the law to your own side and protect your assets before creditors come knocking. While you may feel you have already taken some of the proper steps  to safeguard your assets from a potential claim, only a certified financial planner can give you the insights you need to truly prevent an attack from creditors. With  Lowery Thomas, you will gain a personalized financial assessment to help block you and your wealth from any damaging legal action. 

Why Asset Protection is Important for Prevention 

Think of asset protection like the flu shot you get every year. If you already have the flu, that shot will do little to stop the havoc it is wreaking on your body. Similarly, if creditors have already made a claim on your assets, it may be too late, or even illegal, to take steps to prevent it. Any estate planning measures put into place would not be applied retroactively, and any property transfers made during a lawsuit could put you in further legal jeopardy. 

With the aid of a financial planner, your property and wealth can be safely and legally put into a trust or other suitable entity in your favor. This entity is separate from your individual person and therefore spared from any claim that future creditors may have. With this plan, you have the benefit of safeguarding your assets while still being legally entitled to your wealth. A properly created trust can still give you abundant control of your assets, including the ability to sell, refinance, place a mortgage upon, and divide them. Protectable assets may include, but are not limited to: 

• Retirement accounts (IRAs, 401(k)s, etc.); 

• Real Estate (primary residence, vacation homes, raw land, and investment properties, etc.); 

• Liquid Assets (checking accounts, savings accounts, and money market accounts, etc.); and 

• Personal Property (jewelry, motor vehicles, boats, recreational vehicles, and life insurance policies, etc.) 

With your financial security at stake, it is important to contact a trusted advisor for all of your asset protection and estate planning needs. Our team can help you ensure a safe and secure financial future for you and your loved ones. Contact us today  to learn more or schedule a consultation.