Asset Protection Has Never Been More Important | USTaxAid

Diane Kennedy's Blog

Asset Protection Has Never Been More Important

Written by Diane Kennedy, CPA on July 30, 2008

In times of economic downturn, there are more people looking to blame their own financial troubles on someone else. And if they think you have something, they might even delude themselves into thinking they deserve it more than you. Tough times discloses the true nature of people. One of my favorite sayings is that being fearless just means you have no fear. To have courage means that you feel fear and do what’s right anyway.

Unfortunately, the opposite is true too. Lazy, greedy people are more likely to do whatever they can to get to your assets when they feel the pinch. That’s why it’s more important than every before to protect what you have.

Some common tools to become familiar with are the homestead exemption for your state (the amount of equity in your home that will be unavailable if someone comes after you), LLC (limited liability companies) protection for your asset (verify that the LLC has been formed in a state with good charging order protection) and pension plan assets (protected from creditors). Remember that your pension plan can invest in passive businesses and real estate too.

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