Do you worry about lawsuits stripping you of your assets? You worked hard for the assets you have and you deserve to protect those assets. In the professional world, civil litigation is not uncommon. Unhappy clients can lead to lawsuits. Your liability coverage may not always be enough to cover a lawsuit. This is one of the main reasons people look into asset protection trusts. Here are three tips to avoid lawsuits.
When you create your asset protection plan, coordinate your plan with any other wills or trusts that you currently have. Likewise, ensure that you follow any current estate and tax laws. If you are careless, you could make mistakes that cost you your trust. To create an asset protection trust involves complex tax law. Choose a lawyer that can help you navigate the process and ensure that your asset protection trust is valid. Not all states allow asset protection trusts. The states that allow said trusts include:
- New Hampshire
- Rhode Island
- South Dakota
Other states may not allow you to create these trusts.
Remain Private About Assets
Your privacy can defend you against lawsuits. When you file a lawsuit against someone, you should always be mindful of the person’s assets. You can win a settlement but you can’t force someone to pay when he or she does not have the money or assets to pay. You can apply this logic to lawsuits against you. If you’re worried about potential civil litigation, to protect your assets in a trust makes them untraceable. When investigating, the other party will not see your assets and may not sue you.
Take Action in Advance
A lot of people fail to act. Unless you have few assets or no concerns about lawsuits, you should consider how you are going to protect your assets. When you do not create an estate plan to protect your assets, you put yourself in danger. No one wants to consider themselves at risk of a lawsuit, but if you work with clients who invest money in your services, an unhappy customer may likely file a lawsuit against you. It’s always better to protect yourself in advance.
Lawsuits can be financially devastating. If you have assets that you need to protect, then you need to have a plan in place to ensure the safety of your estate. Contact a lawyer, like an estate planning lawyer in Melbourne, FL from the Law Offices of Arcadier, Biggie, & Wood, today to find out more about asset protection trusts.