Did you know that around two out of every three homes in the United States are underinsured? So many people do not understand the importance of protecting their assets. We have put together a guide to share how to protect your assets and different ways to make sure that your assets are taken care of in the event of an emergency.
Keep reading to learn the ins and outs of protecting what you worked so hard to buy.
1. Land Trusts
This type of trust will give the privacy of ownership for real estate. While it is not an asset protection tool, the land trust will hide your ownership of the property. This will help reduce the likelihood of an attorney taking a case against you on a contingent fee basis.
When a land trust is drafted the same people usually hold the trustor and the beneficiary positions. The beneficiaries can stay in control of the property and receive all the income from the trust.
2. Specialty Insurance
Another way to protect your assets is to take out specialty insurance. This will help safeguard your commodities like boats, businesses, flooding, etc. Because the unexpected can always happen, it is good to be prepared in case of an emergency.
This insurance comes in handy when something unexpected comes up and keeps these assets from being put in jeopardy during something like a lawsuit against you.
3. Umbrella Insurance
You also have the option of buying umbrella insurance to cover any other type of insurance you are already carrying. This can be taken out for either personal or business. Usually, this will cost around $300 to $500 per year for either a $1 million or $2 million dollar policy.
Keep in mind that umbrella insurance will not cover criminal, reckless, fraudulent, or negligent action.
A limited liability company can help protect you from any personal liability lawsuits in a case where someone decides to sue your business. For example, if your business falls behind and they can’t pay a creditor then there are legal provisions to help prevent the creditor from coming after any of your personal belongings when you have an LLC set up.
This means that your home, car, and other valuables are not at risk if anything were to happen. The key is to use the LLC correctly and have it set up properly as well because a judge can hold the LLC owner liable if they directly injure someone.
Now You Know How to Protect Your Assets
We hope that this list on how to protect your assets will get the ball rolling for you to make sure you are covered no matter what. Do not let everything you worked so hard for just end up in the wrong hands and don’t let it get taken away from you.
Did our article help you out today? Browse around the rest of our site for some more tips.