Asset protection in light of coronavirus
Why Now is the Time to Protect your Assets and Complete Your Estate Planning
As the coronavirus situation continues to evolve, and the market continues to show signs of distress and fluctuation, the nation is wondering what will happen next. Previous research has shown that during times when the economy is suffering the frequency of new litigation cases will rise. If our good economy has shown a continued growth in lawsuits each year, one can only surmise what is to come if we fully hit an economic downturn.
Under the financial stresses caused by the coronavirus, people and businesses will be much quicker to resort to litigation to recoup monies owed or avoid taking financial losses. Some may even resort to litigation as a means of achieving short-term financial security through settlements whether or not the litigation is frivolous or justified. When tough times arise, one thing is clear: Litigation’s popularity increases. The last thing you want is to be the easy target during troubled times.
To protect yourself and your assets during an economic downturn, you need to implement an asset protection plan which will help you protect your hard-earned wealth.
Asset protection is the answer to our increasingly litigious society. While asset protection can sometimes be a complex practice, it is a very simple concept. Get all of your significant assets out of your name and out of potential creditor reach. You must be proactive about protecting both your personal and business assets and protect yourself before creditors arise.
Furthermore, you must think about your estate planning. Preparing for the end of life is usually one of those topics that falls to the back burner. We know we should do it, but it is not the most pleasant topic to discuss.
According to current studies, on average only four out of 10 Americans have completed their estate planning. With the unfortunate uncertainty that has been caused by coronavirus, it is now more important than ever to make sure both your financial and health care documents are put in place.
Incapacity planning, also referred to as life planning, is planning for the unfortunate circumstance of becoming unable to control your finances or health decisions. This could be brought on by a car accident, illness or old age. If you don’t plan for your incapacity, you run the risk of the courts interfering and acting inconsistently with your intended desires.
The goal is to integrate your asset protection with your estate planning, so you have a comprehensive plan to protect what you have worked so hard for today and have an afterlife plan for the future.