Everyone wants to be successful in life, and one of the symbols of success is the number of assets accrued. After creating your wealth, the next thing you should learn is how to protect it. Remember, no one is invincible since anybody can lose their property through various risky incidents.
Asset and property protection ensures the security of your wealth throughout your lifetime. Also, it is vital to have a plan in place that will leave a legacy to your loved ones long after you are gone. It doesn’t matter whether you own a startup business or an already established one; the significance of such a plan is equal in both circumstances.
It is never too late to press the “protect button” for a better and less frustrating future. For example, if you live in the Cook Islands, it pays to obtain a Cook Islands asset protection trust to keep your wealth in check at all times. If you are still indecisive on this matter, here are some of the reasons why protecting your assets should be your top priority:
Protect whoever inherits your wealth
One culture that cuts across most communities worldwide is the tradition of inheritance. Once you have amassed a lot of wealth, the most probable inheritor in case of your death is your wife/husband or your child. Of course, you have the right to decide by indicating it in your will.
You would like your heir to enjoy the wealth and strengthen your legacy. However, they may run into some trouble, for instance, when trying to sell the inherited house. There have been cases of a person losing their property due to bankruptcy or the rule of a court of law. The same could happen to your heir, and the only saviour would be asset protection.
As you grow your business, the size of personal wealth also increases. You wouldn’t want your car and house to fall into legal hands in case of bankruptcy, would you? Well, to ensure that any issues facing your business do not affect your assets, there’s a need for protection from trusted agencies.
If that is not reason enough, then, imagine your company getting sued. Of course, no one expects this, but it is a normal occurrence, especially if you have many rivals. Some opponents may not be satisfied by only indicting your company; they might also pursue your private belongings, including bank accounts. That’s where asset and property protection comes into play.
Shield against the cost of a nursing home
You might be wondering how a nursing home and asset protection relate. Well, here is the thing–nursing homes rarely accept your medical insurance card. In the U.S., for instance, Medicaid is used in such a case. However, you only qualify for this if you don’t have any source of cash. Remember, your bank accounts and house are considered when clearing your bills.
So, what happens is that your assets will be used, and once all the cash is exhausted, Medicaid comes into play. The bills of a nursing home could amount to $100,000 annually or even more. But, by protecting your properties, they’ll be overlooked when determining your eligibility for Medicaid. Let your future generation have something with which to remember you by shielding your assets.
Minimize conflicts with a business partner
As earlier stated, business losses could end up eating up part of your private assets if you don’t protect them. Things could get even worse if the business is a partnership. A company suffering losses is normal, but you would want your private wealth to remain safe regardless of the extent of these losses. In fact, this will take the assets and properties out of the question in case a financial conflict arises.
Keep your assets safe even when incapacity kicks in
Being incapacitated is something that will come at some point in your life. However, don’t let this be the reason for losing your wealth to any external pressure. Choosing a trustworthy person or company to look after your property is the best decision you could ever make. As such, you’ll be confident that your wealth is in good hands even when you don’t have powers to fight any attacks by yourself.
Have you already protected your assets and properties? If not, then, it’s never too late to do the right thing. You can assign this task to a trusted agency, and they’ll ensure your property remains safe from your rivals or any effects of a legal procedure.
One of the main reasons why this is important is to ensure that your future generation doesn’t get frustrated by the law. Of course, as you get old, you might end up in a nursing home. The bills there can be quite costly, especially if your assets are unprotected.