Updated: Mar 16, 2020
Asset protection planning refers to a comprehensive process designed to minimize or eliminate your risk for your assets being exposed to threats in the future. One of the most common threats in the United States is the ability for someone to access your assets through a lawsuit.
Living in a litigious society, it means that those people who are perceived to have a great deal of assets could be more of a target for lawsuits of any type. One recent survey conducted by an insurance company found that Americans with substantial assets have increasing concerns about becoming the target of liability lawsuits.
Common sources of liability include visitors hurt on your property, vehicle accidents, divorce, household employee liability, injuries that occur after a party, professional risk, libel, and slander, risks from being an officer, owner of a company, and liabilities from being on the board of a charitable organization.
Some of the tips that wealthy families use to protect themselves with asset protection strategies include having liability insurance, establishing the right trust with the help of a Michigan asset protection planning attorney, and setting up an LLC or a corporation.
The threat of lawsuits shouldn’t be something you think about only after you’ve been served with papers. Waiting too long gives you a limited opportunity to respond and put into place the necessary strategies to safeguard those assets.
Deciding what is most appropriate for your family can be accomplished in an initial consultation with a Michigan asset protection planning lawyer.