So what is asset protection planning? It is the process by which you arrange your financial affairs in order to prevent, or at the very minimum minimize the risk, of your assets being used to fulfill all claims of future creditors or claimants. Once you know what asset protection and planning is, you can see why it is a good idea to protect your life and the things that you own.
There are several reasons why it is important for women to get asset protections. Women live longer than men and therefore will need their money to last them longer in retirement: at some point in their lives most women will be responsible for their own finances. Another reason is that having an asset protection plan can actually help you to reach financial freedom.
Most experts say that in order to protect your assets you should get insurance, and make the risk theirs. This seems to be the easiest way to do it. Look at all the plans closely thought, because some insurance companies may not have all the coverage you need, or may not be willing to give it to you.
The ownership of the assets can even be legally transferred to a trust. There are various types of trust that you can get to do this. The first one is called a Protective trust. This trust is meant to protect your assets and estate. What it protects them from are lawsuits, unwanted beneficiary, creditor claims, and all other threats. The next type of trust is the Irrevocable Trust. If you want this type of trust to help protect your assets you must not be able to change or dissolve the trust once you set it up. Domestic Self-Settled Trusts are only available in a few states. With this type of trust you name yourself as the beneficiary. Then there are Offshore or Foreign Trusts, which help protect your assets because many countries have laws that make it very difficult for creditors to get your assets.
Every woman should be thinking about asset protection and planning. You need to know what you are going to do in the event that you have a lawsuit or creditor trying to use your assets to fulfill what you owe. Make decisions about what to do now, so in the future if it happens you are ready.
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