Regardless of the means you have used to gather your wealth, your wealth is essential to you, and you need to protect it. You probably have noticed how the current COVID-19 pandemic has rapidly destroyed jobs, lives, the economy of the globe, and equity wealth. Apart from that, there are uncountable other risks that can potentially impact your wealth, some more typical than others. But, the good news is that there are simple ways to protect your wealth and prevent losses.
Protect your Assets
Litigations can come from anywhere; you, therefore, don’t have to wait until it is about to happen before you make the moves. You can get sued by employees, neighbors, customers, and sometimes your family members. One of the best and proven ways to protect your wealth from such lawsuits is by shifting some from the reach of possible suits. To do that, you will need the help of an estate planning attorney.
Estate planning takes the assets out of your name and puts them in legitimately secure vehicles. Once your assets are far from reach, people will lose the drive to make a suit.
Review Every Account that is Jointly Held
It can be wise to share an asset’s ownership with your spouse, friend, business partner, or even a family member. However, any amount of money that you deposit in a jointly held account is usually at risk. Take, for instance, what will happen when your partner files for divorce or incurs a tax lien; the whole account might be wiped out.
To avoid such instances, avoid adding extra owners to your accounts. Instead, be proactive about planning for the unexpected. Set up a monetary power of attorney to prevent unexpected taxes and offer your partner broad access to your finances when they need it the most.
Take Advantage of Retirement Accounts
The federal laws offer boundless protection to retirement plans qualified under ERISA and assets in IRA of up to a million-dollar. You can use an Individual Retirement Account (IRA) rescue strategy to put your retirement plan assets into a remote LLC held by the IRA and managed by a foreign managing manager.