3 Ways Asset Protection Will Help You Safeguard Your Wealth
#1. Lawsuit ProtectionUnless you're a doctor, or in some other high-risk profession, you probably don't think too much about the chance of getting sued. In reality "43% of small business owners have been threatened or involved in a lawsuit", according to the American Society of Asset Protection.
#2. Save on TaxesIf you structure your assets properly, you could literally be saving yourself thousands of dollars. A business with an income of $100,000 to $150,000 can easily structure their assets to save 2.7%-4.6% or $2,700 - $6,900 in self-employment taxes but a lot of small businesses are unaware of this savings. Another way to save money on taxes is by transferring your property into a charitable remainder trust or CRT so that when it comes time to sell your home, rather than spending up to a couple hundred thousand dollars in taxes, you wouldn't have to spend any because it would all be within a CRT.
#3. Safeguard Your SuccessionYou've worked hard throughout your life and want to be confident that your assets are properly passed down. While many think that their will is an adequate measure to insure their wealth is dispersed to their specifications, when actually "50% of your assets could be lost to taxes and probate" after you pass. An asset protection expert can assist you in safeguarding your wealth by teaching you how to utilize Family Limited Partnerships to safely transfer money to your next generation after you pass. They also have an in-depth knowledge of homestead laws which can help protect the value of your home from creditors, taxes, and occurrences that may arise following the death of a spouse.
In the grand scheme of things, taking the time and effort to safeguard your assets from potential lawsuits, taxes, and by ensuring succession of your wealth is safeguarded, you will save thousands, making it well worth the effort.
By Jackson Cooper