What is asset protection planning?

Before you can start protecting your assets, you first need to understand what asset protection is. In a nutshell, it involves taking steps to ensure that any items of value you own are passed along to your loved ones instead of getting gobbled up by other claimants, either during your lifetime or after your death. It's important that you protect your assets so that your family will be cared for in the way you envision. However, there are a few guidelines you might want to follow when it comes to protecting your assets.

Start now

It's never too soon to start planning for your future. In terms of asset protection, this means setting up either a last will and testament, family trusts, or some combination of barriers to ensure your assets go to intended beneficiaries. It's a common misconception that asset planning is only for the elderly and/or wealthy. But no matter how much or little you have in the way of assets, you surely want them to go to your loved ones, and that could require some planning on your part.

Consider your options

It's important to understand the differences between wills and trusts before you decide which one best suits your needs, or alternately, if you want to use both. You're probably more familiar with a will, which is a legal document intended to spell out your last wishes, including the intended beneficiaries of your estate. But a will must go through probate, which opens it up to be contested, leaving loved ones in the lurch in the process. There is no such process involved with trusts because assets are held for beneficiaries until the time of your death, leaving you as a virtual custodian of your worldly possessions during your lifetime.

Separate business and personal interests

In asset planning it is essential to separate your business assets from your personal belongings. After all, you wouldn't want your home claimed by creditors seeking payment for business expenses. This is where a family home trust, for example, could provide peace of mind.

Hire help as needed

Unless you're a financial planner, you may not be terribly interested in learning the ins and outs of asset protection. While you can do a lot on your own, there are websites that can help you set up fast and affordable trust structures. So you might prefer to pay extra for professional help in the planning process.

Supplement with insurance

Asset protection is a great way to ensure that your estate is passed on to loved ones, but don't forget to supplement this plan with insurance policies designed to help pay off any debts still owed at the end of your life (or at least your funeral expenses). If you choose to do this, your family won't get stuck with the bill.

So why not learn more and register with TrustUs today.

After all, it's in your hands.