Asset protection simply refers to the legal strategies and plans used to safeguard an individual or business's assets from risks such as lawsuits, creditors and financial liabilities. The goal is to minimise the exposure of assets to potential risks and protect them from being lost. This work can involve legal, financial and insurance tools.
Business owners think about:
> Incorporation: which will protect personal assets from any future debts or legal issues that may arise in your business. The business becomes a separate legal entity, which can limit the liability of the business owner.
> Insurance: adequate insurance coverage is essential for protecting business assets including liability insurance, life insurance, income protection insurance and property insurance as an example.
> Trusts: this is a legal tool used to transfer ownership of assets while maintaining control over them.
> Asset segregation: separating assets among multiple entities may help to reduce the overall risk to assets.
> Intellectual property protection: includes patents, trademarks and copyrights. This will help prevent other businesses using or profiting from them
Let’s chat as these strategies may not be appropriate for every business owner or situation. Reach out if you need support with consulting legal and financial professionals to determine the best strategies for your specific needs.
All information provided is for informational and general purposes only, and shall not be relied upon as personal financial advice.