How do you ensure that the assets you own are safe? Unless you have a proper plan for protection of the assets, the risk of losing them is always there. Whether it is real estate or business assets, bank accounts or jewelry, you need to implement a plan for protection. The objective is to make it difficult for creditor/litigants to reach these assets.

When you have an effective plan in place, there is no reason to fret over loss of property if financial difficulties make it impossible to repay a certain debt or if people filing frivolous suits try to come after your property to recover damages.

As per the federal and state laws, certain forms of property are quite difficult to reach by creditors or litigants. If your plan involves transferring your property to these forms,asset protection becomes easy. However, doing this on your own is not an easy task if you are not proficient in the laws and financial details.

If the plan fails to give your assets the adequate protection, it would be just a waste of time and effort. You need to get a qualified and experienced legal advisor for this. Before you discuss the matter with him/her, you need to determine certain things.

Which assets do you need to protect? Make a list of the items you want to protect. Note down the type and the value (equity in case of property) of each. This is an essential for any asset protection plan. Your legal advisor would need this list to determine the techniques necessary for your case.

What kind of protection do you need? If the chances of litigation against you are not high, you may consider getting standard protection. If you are in a high-risk profession or business, you may need to implement different techniques, in conjunction with each other or in a layer format.

Note: The objective of this plan is to protect your assets from unforeseen problems. Therefore, it is better to opt for high standard of protection; after all, you never know how difficult a situation may become. A simple accident may acquire difficult proportions if someone claims thousands for injuries and your insurance does not cover it all.

How much will you be able to spend on it? Cost is a concern. If your plan is too expensive to implement, the original purpose is defeated. Discuss the money matters with the legal advisor beforehand to avoid problems later.