What is Asset Protection Planning?
Asset Protection Planning involves methods of protecting your assets from potential lawsuits, creditors and judgments. Most consider planning in advance for these unforeseen problems due to a lawsuit happy culture.
How Can I Protect My Assets?
There are two basic principles used to provide asset protection:
This principle requires an investment in an insurance product covering risk such as umbrella, malpractice and errors & omissions insurance. In some instances, the cost of coverage may be prohibitive and risk avoidance may be a preferred method.
This is a process of transferring your assets into vehicles that are creditor proof. One of the first things to remember when planning asset protection through risk avoidance is that Florida has some really great and liberal exemptions. Certain property is exempt from judgment creditors, and your financial planner may utilize many tools and strategies to protect your assets.