When you have assets, you also have assets to lose. What many earners in Nevada do not recognize is that asset protection and financial planning work together. The Balance explains the importance of combining financial planning and asset protection.
To create an appropriate asset protection plan, you have to examine your short and long-term financial goals. Study your current and future sources of income, how much you need if you plan to retire and how much you will be able to pass on to your family or friends through an estate plan. When you have this information, you can begin to put together a financial plan.
With information on your net worth and financial situation, you can predict the assets you will accumulate in the future and hence can create an estate plan that addresses your current and future situation. Irrevocable trusts are a common method that clients use to protect their assets.
Asset protection plans can also protect you and your beneficiaries from creditors. Any creditor that has a judgment against you cannot take all of your assets. Instead, you have more negotiating power when discussing settlement with a creditor.
It is crucial to do this ahead of time too. If you face a lawsuit and then determine that you need asset protection, then that protection plan may be overturned.
None of the above information is to be interpreted as legal advice. It is educational only.
