If you are lucky enough to have acquired a few assets over your life, you might want to consider how you can protect these in the future. You may currently have control over all your assets and are looking after them all carefully, but a time will come where you will no longer be around to protect them. Here are a few ways in which you could protect your assets when you are no longer around.
Get to Grips on Estate Planning
Estate planning is a crucial step to take towards covering all of your assets, including bank accounts, real estate, stocks and securities, investment accounts and any personal possessions such as wine collections or cars, etc. With estate planning, you control the distribution of your assets, known as your ‘estate’, and therefore, you will choose from your family members who will be receiving what upon your death. You may also plan the funeral arrangements and ensure that the costs for this will be covered. Contact Paula Montoya Law, an Orlando Law Firm for an appointment with an estate planning attorney to find out more and start covering all your assets with a friendly and approachable company.
Place Some Assets in Your Spouse’s Name
If one of you has a riskier occupation, it might be worth placing some of your assets in your spouse’s name since normally the creditors of one spouse cannot reach the separate assets of the other. This leaves the assets with the least exposure to risk; however, a prenuptial or postnuptial property agreement would be beneficial, and be aware that you could be seriously affecting the breakdown of your assets if you were to divorce. Nevertheless, if you are in a secure marriage upon your death, the assets will become the sole property of your spouse and you can feel secure knowing that they are going to be looked after by someone who you trust.
Choose the Correct Business Entity
Being a sole proprietor puts your business and personal assets at risk if anything were to happen to your business, as they will be used by creditors to pay off the debt that you may have incurred over time. Becoming a limited liability company will ensure that your personal assets remain untouched if your business were to fall into financial difficulty, so it is a good idea to set up a limited liability entity or S-corporation to keep these separate.
Use Proper Contracts and Procedures
Have all your paperwork up to date and professional so that creditors won’t be able to find a flaw in your business approach and attack your personal assets. If you only rely on e-mail for confirmation and terms rather than having good lease agreements and having contracts on every project, you could be seen as acting fraudulently or negligently.
There is never a better time to start protecting your assets than now, since the decisions you make today can affect the worth of your assets and what happens to them if you were to pass away unexpectedly. Use these strategies to get control over your assets for the future.