- What is Asset Protection?
- Who needs Asset Protection?
- Why is Asset Protection Necessary?
- Business formation
- Estate planning
- Domestic planning
- Taxes
- Insurance
- Bankruptcy
- Litigation
In today's unsettled financial times, no one can afford to ignore the need to protect their home and property from loss. It's not just the very wealthy who need to protect assets, every married couple, every homeowner, all small business owners, especially those earning less than $500,000 a year. Catastrophic illness, an automobile accident, an unfortunate divorce can easily devastate years of hard work and effort. Lawful asset protection can protect your [business], your [home] and [estate] from predatory lawsuits.
Who gets targeted for these lawsuits? Do you think it's only the very rich, like Bill Gates or Warren Buffet? While it may be true that big companies like Microsoft get sued, the vast majority of suits filed in the U.S. target small business owners and people earning well under $250,000. Big companies and the very wealthy can and do protect their assets. Many of the same strategies they use are available to you. CANALES-OWEN, BUTTERS & ASSOCIATES can help you explore the many options and design strategies
B. Asset Protection
1. What is Asset Protection?
It is not until you are actually faced with the fact of a lawsuit that it becomes apparent how important it is to protect your hard-earned assets. Most of us do not think we will ever be sued, but here are a few sobering facts you should be aware of:
- There is one chance in five that you will be sued within a year. If you own a business or are a doctor, your chances are one in three;
- 90% of the world's litigation happen in the U.S. and 70% of the world's attorneys call the U.S.A. home;
- Our legal system's costs are significantly greater than those of any other developed nation and those costs are growing four times faster than our economy;
- At the present time, litigation is the fastest growing industry in the U.S.
There are a lot of ways to describe Asset Protection, but the easiest to understand is 'safety net.' Asset Protection planning applies a variety of strategies to shield your property, your business and your savings from creditors and lawsuits
2. Who needs Asset Protection?
Business owners, professionals and others with a net worth of $250,000 or greater certainly need to be able to protect their assets. However, in today's litigious society, it is more important for those of us with modest wealth to protect what we've worked so hard for: our home, our cars, our savings and retirement nest eggs.
3. Why is Asset Protection necessary?
Because no one can be certain about the outcome of a lawsuit, it only makes sense to protect what you have worked for. For example, suppose you are involved in an automobile accident. If you are seriously injured, you would want to be compensated for those injuries, lost wages, your attorney's fees and costs; by the same token, if you are the at-fault party, the injured person will also want to recover their losses. Legal, ethical means are available to you to protect what you own.
Well-designed Asset Protection planning discourages lawsuits. When a potential plaintiff's attorney evaluates the possibility of winning a case against you, having your assets protected will encourage a solution-driven resolution.
C. FAQ's
Is Asset Protection legal?
Yes, as long as you are not trying to avoid paying money you legitimately owe. Therefore, the best way to legally protect what you own is by being solvent before you transfer property or funds.
Isn't insurance enough to protect my assets?
If you read your insurance policies, you'll see they do not cover everything against possible loss. Whereas your liability policy may cover against accidental injuries at your place of business, that same insurance won't cover things like employment discrimination, breach of contract claims or even some very serious natural disasters.
Are there any tax advantages to Asset Protection?
A very well designed asset protection plan which includes incorporation and estate planning can provide many tax advantages for you. However, in most cases asset protection is tax neutral because an asset protection plan is design to protect your property and not to avoid paying taxes. Because your situation is unique, our attorneys are your best resource for advice on ensuring that your asset protection plan fully complies with the law.
What about bankruptcy?
Financial difficulties can arise at any time and for any number of reasons, such as divorce, job loss, medical emergencies, or many other unforseen reasons, and bankruptcy may well be your only option. Be prepared! Work just as hard to protect what you own as you did when you built it.
D. Legal Services
No single Asset Protection planning strategy or set of strategies can be suitable for every business owner. Thus, a variety of tools, techniques and strategies will be designed to meet your particular needs. CANALES-OWEN, BUTTERS & ASSOCIATES can help you tailor the best plan for your needs. | 
