America is one of the most litigious developed nations, and it is important to always be aware of the possible risks of legal liability. Asset protection is one way to safeguard yourself against a worst-case scenario: It goes beyond estate planning to touch on many aspects of your legal life.
The versatility of asset protection is often understated. People may believe that the only reason to consider it is to maintain your lifestyle in retirement and provide for the next generation. In fact, this refers to estate planning, which is only one specific form of asset protection.
With the right asset protection expertise, you are defended in a wide range of situations.
Divorce is a challenging time for everyone involved – and it is one of the single most disruptive events for your portfolio and other assets. Depending on factors like state of legal residence and joint property, you could find yourself at significant risk. This must be planned for and mitigated in advance.
2. Auto Accidents
Auto accidents can upend your finances in many different scenarios. You don’t have to be the one at fault – or even directly involved – to suffer. If your uninsured or under-insured teen is found responsible for a wreck, your assets may hang in the balance.
3. Vicarious Liability
Vicarious liability can arise in the context of your employees’ actions or omissions. While the most obvious form of vicarious liability comes from those under your direct employ, you could be vulnerable to vicarious liability based on the acts of business partners or others.
4. Medical Issues
Medical debt is one of the most serious problems facing Americans today. Unpaid medical bills rank as the #1 reason Americans file for bankruptcy. Even those with significant assets are not safe from the possibility of a major medical crisis that has long-lasting repercussions.
5. Social Host Liability
If you like to host dinner parties and other gatherings, watch out: Accidents involving your guests after the event breaks up can become your responsibility in a court of law. This is another area where the misjudgments of kids or teens can come back to haunt you even if you were not present at the time.
6. Other Debts and Liabilities
Even if you are financially healthy, debts of all sorts can arise unexpectedly – in mid-career or in mid-life. It is always best to have an asset protection plan in place so that unexpected issues can’t undermine the foundation of your financial future and leave you scrambling.
Go Beyond the Basics with BD Financial Concepts
The right financial planner can give you confidence throughout your financial life – not only in retirement but every step of the way before and after. BD Financial concepts offers you a proven financial planning process that can truly make the difference.
Life is full of unforeseen circumstances and difficulties you might have to navigate. A sound asset protection plan can serve as the North Star of your finances even when you find rough waters ahead.
To find out more or get started, contact BD Financial Concepts today.
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