Comprehensive Asset Protection Planning Checklist
June 27, 2016
There are many different areas in which you may be vulnerable to a predatory attack during a lawsuit. For example, regular business activities, owning real estate, or operating a motor vehicle could all expose you to potential lawsuit risks.
Most people are aware that lawsuits are more common in our society today than they have been before. That being said, far too many people do not give enough attention and planning to the benefits of guarding against these risks. This process is known as asset protection planning, a form of risk management planning that can be helped by asset protection planning attorney.
The ultimate goal of asset protection planning is to prevent lawsuits from happening. The following questions should always be asked as you go through the process of asset protection planning.
- Have you consulted with a knowledgeable insurance consultant about an insurance adequacy analysis for your business as well as you personally?
- Do you understand the benefits and basic structures of traditional asset protection planning arrangements within your state as well as a limitation of each, including:
- Holding assets in qualified employer-related retirement plans and IRAs
- Using life insurance policies and annuities
- Owning property and joint names with your spouse
- Do you understand how trust can benefit your asset protection planning goals?
- If you do have real estate, do you have it owned in a manner that will limit your personal exposure to risks?
- Is your business structured properly in order to minimize your personal exposure to lawsuit risk?
- Has your business been properly structured and analyzed in order to prevent exposure of assets based on present or future creditors of the owners of the business?
- Have you structured an operating agreement, a shareholder agreement, or partnership agreement that has asset protection planning provisions within it?
- Are your investment or business assets separated into different legal entities to protect one group of assets from being associated with another?
- Do all of the formalities associated with the operation of your business such as having a separate bank account, not intermingling business transactions with personal, executing legal documents in the right manner, keeping regular minutes, and keeping separate records?
- Do you know how to structure asset transfers in the most effective manner in order to minimize any exposure to fraudulent conveyance laws?
- Do all of your personal estate planning documents have designated provisions associated with protecting assets passing to your children or your spouse?
Are you ready to discuss your next steps? Shah & Associates is here to help you with all your New Jersey asset protection planning concerns. Reach out to our office today to learn more. Set up an appointment by contacting info@lawesq.net .
