Strategies To Protect Your Assets

Ever heard of a homeless person being sued? Of course not. People sue those who have money. If you have sizable assets or are about to come into a windfall, there are a number of strategies you should consider using to protect yourself from lawsuits.

Courtroom Drama
(Photo credit: Erin Nealey)

According to an article in the Chicago Tribune, these include:

  • Increase your liability insurance. It should be at least equal to your wealth or to what you are going to inherit.
  • Keep assets separate. Depending on the state you live in, money in a joint account could be split equally in the case of divorce.
  • Protect yourself from renters. Set up an LLC or corporation to shield yourself from rentersโ€™ claims.
  • Review joint accounts. If you have any, keep the balances as low as possible.
  • Formalize any informal partnerships. Better yet, avoid partnerships and set up corporations.
  • Create business entities to shield assets. Sole proprietorships are vulnerable.

If you have any questions about asset protection strategies, feel free to call us at (626) 696-3145 for a consultation.

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