“For every 60 minutes you spend making money, spend 60 seconds thinking about how to protect it!”
Boca Raton, Florida (PRWEB) October 22, 2015
While most business owners know how to make money, few know how to protect it. As threats to your wealth come from every direction and with lawsuits becoming the next biggest business, therefore it is essential for business owners to know how to protect themselves. Learn how business owners can shield their assets from creditors by reading Hillel L. Presser, Esq., MBA’s top Asset Protection Tips below.
1. Know the Definition of Asset Protection
Asset protection is the legal process of titling both your personal and business assets to put them beyond the reach of future potential threats and creditors. A good asset protection plan should protect all of your assets from any and all financial threats. The real trick in today’s day and age is not to make money but to keep it.
2. Recognize Unique Threats Presented to Business Owners
While asset protection should be taken advantage of by every individual, business owners are especially susceptible to creditor threats due to their day-to-day interactions. For instance, business owners can be sued by their customers, employees and/or suppliers. Business owners can also be sued in connection with a purchase and sale of a business and/or disgruntled partners.
3. Limit the Type of Assets That are Titled to Your Personal Name
The easiest way to protect yourself is to only personally own assets with federal or state statutory protection against lawsuits or creditors. You should maximize the use of exempt assets such as homestead, pensions and retirement funds, and life insurance. Each state has their own federal and state exemptions, therefore it is important to know which exemptions that exist in your state of residence. For instance, Florida has one of the best state exemption laws where your primary home, life insurance, annuities, and retirement accounts are 100% protected.
4. Title Your Assets to Separate and Distinct Protective Entities
The logic behind this is simple - you and your protective entities are looked upon as different individuals. You have a social security number and your protective entities each have a different tax ID number. Therefore, assets titled to your protective entity are not susceptible to your personal creditors and vice versa. Liquid assets or real estate titled in your personal name can easily be lost in a lawsuit, while the same assets titled properly and proactively to a domestic asset protection limited partnership, limited liability company or other protective entity have greater protection from creditors.
5. Protect Your Assets by Using Liens
One way to use liens for Asset Protection is to take out lines of credit. What is a $100,000 car worth if you owe $95,000? You can record mortgages against your property and business. You can use liens to make all of your assets valueless and become an unattractive candidate for a lawsuit.
6. Consider Using International Planning
International planning may include international entities and international trusts. You get the best protection when your assets are international for several reasons. Foreign asset protection jurisdictions do not recognize U.S. judgments, thus a creditor must re-litigate their case within that foreign jurisdiction. Many times, the statute of limitations to commence suit within that jurisdiction may have expired. Further, the standard used in international courts is beyond a reasonable doubt, which is incredibly hard to overcome. The daunting beyond reasonable doubt evidence standard helps explain why only fewer than 3 out of 100 judgment creditors even attempt to recover international wealth.
The Presser Law Firm P.A., Asset Protection Attorneys, represents individuals and businesses in connection with the establishment of comprehensive Asset Protection plans that incorporate both domestic and international components.
Visit the Law Firm’s website (http://www.AssetProtectionAttorneys.com) for access to educational material on asset protection, business law, estate planning, and probate including webinars, articles and detailed legal explanations.
Contact The Presser Law Firm, P.A., Asset Protection Attorneys for a Complimentary Preliminary Consultation with one of our attorneys or to receive complimentary copies of our latest best-selling books on Asset Protection.
“For every 60 minutes you spend making money, spend 60 seconds thinking about how to protect it!” states attorney Hillel L. Presser, Esq., MBA regarding the importance of protecting your assets proactively.