Asset protection consists of the use of legal and practical means to protect your personal and/or business assets and funds on a long-term basis. Asset protection is a proactive measure—it is achieved before liability arises. Therefore, it can provide peace of mind for you in the event an unexpected dispute or liability does occur. It is important to realize that even individuals or businesses who do everything right can sometimes encounter lawsuits or claims, and whether the outcome is eventually favorable or not, costs are incurred in contesting or defending. Knowing that you have planned for such an event can provide peace of mind for your financial wellbeing and security in the meantime.
Asset protection can range from simple (for example, forming an LLC to hold a residential rental property) to more specialized, complex needs for clients with multiple business and personal holdings. Depending upon your circumstances and the advice of a tax advisor, it may be appropriate to employ one or more of the available entity types in your asset protection plan, such as a limited liability company, corporation, or, for the more complex situations, limited liability limited partnerships or even offshore trusts.
The Castro Potts Law Firm will conduct an initial analysis that is tailored to balance the need for protection with the level of potential exposure and the client’s particular financial circumstances. We understand that often a client desires to have some protection but would prefer a cost-effective approach for various reasons. In those circumstances, we are happy to advise on the risks, benefits, and most efficient approach to achieve the best protection for the client’s budget. In other cases, a more complex asset protection plan is warranted, in which case we will conduct a thorough analysis and develop a detailed plan to provide the desired level of liability protection and risk minimization, working in conjunction with your other professional advisors and consultants for optimal results. Appropriate tax planning and insurance coverage are key aspects in an appropriate asset protection plan, and therefore we are always happy to work in coordinate with your tax advisor and insurance agent to ensure your needs are met.