Just one lawsuit could easily wreck your life as a single incident could cause you to lose all of your assets, including your home and vehicles. To avoid this, you need to take precautions to legally protect your assets in the event of a lawsuit. Asset protection firms offer the legal help that you needs, using use many techniques to ensure that your property remains yours.

Staggering Statistics

Every 30 seconds, a lawsuit is filed, with over 100 million pending. Almost half of small businesses will be targeted by a lawsuit. Asset protection firms can structure your assets so creditors can’t know about them. Legal fees alone can debilitate a business. Working within the bounds of the debtor-creditor laws, asset protection firms can safeguard your assets from creditors who only seek a cash windfall for their clients.

Reduction in Taxes

Asset protection firms can also help a business reduce their taxes through proper asset structuring. By operating within the law, they can cut the unnecessary taxes many businesses don’t realize they are paying. Proper asset protection might slash self-employment taxes from 2.7 to 4.6 percent in addition to reducing capital gains taxes. For example, if you purchase a rental property that has a massive increase in value, you can be liable to pay a capital gains tax on the difference, taking a huge chunk of your potential profit. However, asset protection firms can transfer the asset into a charitable remainder trust. The CRT could then sell the asset without paying the capital gains tax so that the profit reverts back to the trust. This ensures that you receive the maximum value of your property asset.

Proper Business Structuring

Asset protection firms also ensure that what is yours is passed onto your beneficiaries when you pass on. Half of your assets could be lost after you die if you haven’t structured them properly. Incorporating your assets isn’t enough as savvy lawyers can cut right through that shield. Asset protection firms know how to structure your business by using the laws of your state to your advantage. This can make all the difference in how much your family gets to keep from your assets. Homestead laws vary by state, so knowing which laws can protect you is essential.

Strategic Company Formation

Business owners might also decide to employ the following strategies when setting up a company:

  • Limited liability companies to prevent a lawsuit against an individual from one against their business
  • Professional limited liability companies to protect partners from lawsuits because of one levied against their partner or
  • Family limited partnerships so that assets pass to the next generation with limited taxes.

However, all of these are fluid and trying to protect your assets by yourself can leave you vulnerable to a loophole. One minor oversight could equate to tens of thousands of dollars in losses. Reputable asset protection firms know these laws well and can help you avoid falling prey to a technicality that leaves your assets at the mercy of lawyers who see only dollar signs.

Author's Bio: 

Jackson Cooper is a investment & finance enthusiast, involved with the experts at American Society For Asset Protection. Look to American Society For Asset Protection, true leaders in the professional Asset Protection industry, to properly guard your assets from lawsuit & litigation. Connect with them online on Facebook - American Society For Asset Protection or LinkedIn. Learn More On The ASAP YouTube Channel