There might be situations where you rush into buying an asset as at that time you have the money and you just want to invest it. The possibly best way of investing your money somewhere seems into putting it into some asset. This can be done by buying a fixed asset like a house or land or property. This situation takes a turn sometimes when we expect that what property we are buying will have a raise in value and hence we think we can benefit from it. It sometimes happens unfortunately that instead of the value being risen, it falls down. What should be done in such a case? Why wait for such a situation to come? What you should do is protect your personal assets before you get caught in such an unfortunate situation. Take a look at the following five steps that will give you a broad view of how you can protect your personal assets. Of course you should see a financial assistant or agent personally for a detailed talk about this matter.
1. Make a list of all you Assets
Yes, take some time out and make a list of all the assets you have. You could update this late in 6 months or so.
2. Do your research on Exemptions and Protective entities
There are many of your personal assets that can be exempted so find out what they are in your case and save them. These assets to be exempted can include your pension, personal residence, retirement fund and life insurance policy. Shoo only these assets in your list. There is also a way how you could protect other assets by protective entities such as offshore or domestic trusts. You could equity strip your assets, layer protection by multiple entities, take loans against the asset or re finance them. This will sure be a run away point for the creditors.
3. Avoid any Personal guarantees
Never fall for promising a personal guarantee. What happens is that when you take the pledge of being personally responsible then you are accountable severely. There are personal guarantee forms that you have to sign when taking a loan but you could just say that you do so for a year or keep it collateral against any other asset. Avoid those suppliers who do not give you any flexibility in personal guarantee.
4. Get company protection
Although your company structure will be allowing you protection but you should assure it yourself. Make sure that you sign the contract in your company’s name to avoid it into becoming a personal guarantee.
5. Get Insurance
You will get great protection and security with the help of asset protection but you should also buy insurance for your assets. Liability insurance will cover any personal injury or damage protected to the asset.
This, however is a very broad view and advice on how you should save and protect your assets. You must make sure to visit a tax officer or financial asset expert personally to know the matter and do’s and don’ts in detail.
