Asset protection planning involves making prudent decisions today to protect yourself, your family, your business, and your hard-earned assets from loss due to lawsuits, creditors, or bankruptcies. This type of legal planning is necessary for professionals and business owners as well as for individuals whose personal assets could be at risk.
It is common to believe you don’t need asset protection, but the fact is, anyone can benefit from this legal process. Asset protection keeps your assets and property safe against any potential risks and ensures your beneficiaries receive what you’ve promised them.
There are several risk management strategies that are useful when trying to protect your assets. They include:
- Exempting Assets. In North Carolina, state and federal laws exempt some of your assets from the claims of creditors. You may be able to convert non-exempt assets into exempt assets. A listing of North Carolina’s exempt assets can be found here.
- Limiting Liability for Professionals and Business Owners. Although many entrepreneurs operate their businesses as sole proprietors rather than through a legal entity like a Limited Liability Company or Corporation, limiting your liability is essential to protecting your assets. When lawsuits are brought against a sole proprietorship, they target the owner’s personal assets. On the other hand, lawsuits against a legal entity are lawsuits against the entity’s assets. By selecting an appropriate legal entity to manage your funds and assets, you’ll be protecting your personal assets against getting sued.
- Transferring Risk with Insurance. Another effective form of asset protection is making sure your liability insurance and other insurance policies are up-to-date, managed, and transparent. You can’t afford to fall prey to a loophole in your insurance agreements.
At Salines-Mondello Law Firm, PC, our estate planning and asset protection attorneys are fully equipped to help you through various risk management strategies. We can help you identify assets to transfer to your legal entity, as well as help you convert some of your non-exempt assets to exempt assets. Our team also offers expert reviews and qualified counsel regarding liability and asset insurance policies and can identify any issues with your current plan.
If you need the assistance of a specialized asset protection attorney in North Carolina, don’t hesitate to call our office by phone at (910) 777-5734 and schedule your first, fully confidential consultation.