Understanding Asset Retention and Protection

Understanding Asset Retention and Protection

Procuring assets is a long and laborious process. However its protection and retention is a still taller task. One continually needs to do their asset retention review to take steps accordingly. Simultaneously the asset protection plan should be in full force. It is basically protecting both individuals and businesses from civil judgments through avenues developed from various statutory laws as well as common laws. Few points to note are –

  • This protection and retention planning is a very strategic and preemptive preparation such that creditors cannot obtain assets in case of any civil judgment. Instead if ignoring the debt obligations, it actually encourages controlling debt obligations.
  • Most of these plans are all encompassing unlike single protection assets like the home protection. While single asset protection is not bad, one must keep ‘flow through’ liability in mind which can be passed or transferred simply as proceeds, profits and cash revenue.
  • While personal and business liability is different, they can be mixed up. One also has the choice to compartmentalize or separate liabilities. A skilled planner can evaluate the best options for specific circumstances.

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Thus, with proper planning for asset planning and retention, one can get both personal and business aspect of life prepared for duress.