Friday 30 May 2014

Why Should You Consider Safeguarding Your Properties Through Asset Protection Trusts

By Nora Jennings


In these times when economies are unstable and your financial future is likely to dwindle, it would be of great help to consider viable wealth protection plans. Planning for future is never a bad idea considering that anything can happen that threatens your properties. With asset protection trusts, they are intended to protect you from future unexpected events that could risk losing your valuable properties.

However, there are ways in which individuals can protect their assets against potential future risks and liabilities. Establishing a trust that safeguards the properties is a proactive way of preventing those assets from being taken by other people through legal suits. The law permits that individuals and families establish special kind of irrevocable trust, which if properly done, it could protect assets from creditors.

It would be devastating for an individual to wake up one day and find that the house he or she has spend two, three, or more decades developing is now confronted with imminent sale to pay off some debt or liabilities implied in a litigation. When you are doing a business, you never know what could happen.

You might supply a product in the market, which turns to harm people who consume it. For example, if you own a restaurant and sell food that causes food poisoning to some guests, you could be sued for the same. Similarly, if you run a health care facility and you administer the wrong drug to a patient that causes harm, you could be liable for the damages.

It is good that you think of how you can protect some, if not all, of your properties. Your family is also featured in the plan to determine who will take care of your heirs including your spouse, children, and other beneficiaries when you die. The debtor-creditor law is applied when determining the planning for your assets protections.

For instance, if you are a business owner and you sell a defective product, which harms the consumer, you are liable for negligent act, which could see you being subjects to lawsuits. You might be compelled to compensate thousands if not millions of dollars for mistakes you made. Similarly, if you are a doctor and operate a private clinic, you could make a mistake that causes damage to a patient, .

People need to have proper and viable assets planning strategies that can help them safeguard their hard acquired wealth. Some of the misfortunes that could strike include lawsuits related to aspects of negligent, which you or your family might have performed such as being involved in a road accident. Before entering into any trust agreement, you should ensure that you do not have pending claims placed against your by other parties.

Acquiring wealth comes with a lot of hard work and dedication, and it could mean your life when the properties are taken through legal means by creditors. Because the process of putting your hard-earned wealth in a trust is a complex one, you need to ensure that you deal with a very knowledgeable attorney in that field. The attorney you deal with should explain to all it takes to get into such agreements.




About the Author:



No comments:

Post a Comment