Start early
Make it simple and transparent
Asset protection complements insurance
Remember that asset protection planning is not a substitute for liability and professional insurance, but only provides supplement insurance. Thus, review your insurance plans regularly and check whether they need an increment. Doing so will mitigate the need to settle a debt that an insurance policy may cover otherwise. Hence, business liability coverage enables you to protect your assets.
Protection and estate planning
Keep your business and personal assets separate
Regardless of how you structure your asset protection plan, always be cautious about what assets are lying where. One cardinal rule is to never place your personal and business assets in the same account and avoid mixing funds at all costs. This will further enable you to keep your business or personal liabilities separate from one another.
House assets in more than one account type
Opting to spread your valuable assets in multiple accounts is one of the effective ways to ensure asset protection. For instance, you can consider keeping some of your holdings in low-risk investments like certificates of deposit and other funds in a revocable or irrevocable trust or other reliable sources. This will further allow you to safeguard your different accounts if something catastrophic happens to one.
Move some assets offshore
Having an offshore account is a crucial part of asset protection planning. Offshore banks offer various alternatives, including savings, checking, and time deposit accounts. Thus, you can access these accounts anytime and boost the effectiveness of employing trusts by opening one or more offshore trust accounts to ensure asset protection.