Every business transaction and investment decision and many personal decisions include an element of financial risk. Moreover, events beyond our control, including disability and death, impact the financial well being of ourselves and our families.
Identifying these risks and others and preparing for their eventuality are cornerstones of the asset protection process.
Perils to identify in the asset protection process include:
- Uninvited creditors
- Loss of a key person in a closely held business
- Faulty execution of a business sale or acquisition
- Termination of an unsuccessful marriage
- A spouse's children from a prior marriage
- Income, estate and gift taxes
- Disability
- Death
- Downside vulnerability of investment assets
Asset protection devices include:
- Life, health, property and liability insurance
- Properly thought out and drafted wills and other testamentary documents
- Legal entities including trusts, limited liability companies and family limited partnerships
- Ownership succession agreements for family and other closely held business interests
- Texas Probate Code Section 450 agreements
- Properly thought out and drafted business sale and acquisition agreements
- Marital Property Agreements
- Proper beneficiary designations for qualified plans and IRAs
- Self-directed rollover IRAs
- Annuities
- Self insurance including captive insurance companies
- Medicare, Medicaid and Long Term Care Insurance
- Competent investment advise