What is Asset Protection Planning

(and How Do You Achieve It)?

What do we mean when we say “Asset Protection Planning”? To answer that, we first need to understand to what “assets” we are actually referring.

Some of those assets might be growth or income-producing assets, such as stocks or real estate. While others may just be stuff that continually loses value, like a car or IKEA furniture.

How can my assets be taken away from me?

There are a couple of primary ways you can lose your assets… 1) is by making really poor investment decisions where you lose money instead of making it…boo, and  2) by getting sued and losing.

How do we avoid this risk and attain asset protection?

You set up “Entities” to hold, and more specifically “silo” your assets.  What kind of entity did you ask? Well, for real estate, it usually comes in the form of an LLC (Limited Liability Company).

What else do I need to know about real estate LLCs and asset protection?

The main issue (and potential deterrent) of putting your real estate in an LLC, is that they cost money to set up and maintain and require some annual maintenance. This comes in form of state annual filings and tax payments you have to make on the LLC.

-How much do you have in personal assets that you could lose? -How many properties do you have? -What states are the properties in, and what state do you live in?

Here is what you should look at when deciding if this asset protection strategy is right for you.

Umbrella insurance is essentially lawsuit insurance (excess liability coverage) for your personal life

Other ways you can protect your assets using umbrella insurance!


What is Asset Protection Planning

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