In business and accounting, an asset is anything that someone or a group of people working together, like a company, owns or has the right to own. The value of an asset can be measured in money. On the balance sheet, there is a list of assets.
Since an asset is anything of value that a person or business owns, there are steps that should be taken to protect them.
Not everyone can afford a complicated plan to protect their assets, but everyone can take some simple steps to protect their hard-earned money.
1 - GOOD ADVICE
Getting good advice could save you a lot of trouble. Every time you have to make a big legal decision, ask a lawyer for help. It's great if you have a friend who can help. If not, it's much better to pay a lawyer a small fee now than to lose a lawsuit that could cost you 100 times more.
2 - INSURANCE
Insurance is something that should always be thought about. Your plan to protect your assets does give you a lot of safety, especially if it was made by an expert, but a good policy is worth more if you also have good insurance.
3 - WATCH OUT
Trust your asset protection needs to a reputable person who has been in the business for a while and whose actions have been successful. Check out a business partner before you start doing business with them. It's better to be careful than to fall for a scam.
4 - KNOW THE LAW
Make sure to follow the laws of your state as much as possible. Each state has different laws about assets. If you have serious credit problems, you should try to find the laws that work in your favour.
5 - MORE THAN ONE OWNER
When assets that cause debt are mixed with other assets, chaos happens. Each of these things should be kept on a different plan and, for bigger things, under a different owner. If you own a house and a place to do business, it's better if one of them is owned by someone else, preferably someone you can trust.
6 - PARTNERSHIP
General partners might seem like a good idea for a quick fix, but they are both responsible for the debts. This means that any partner can sign a legal contract on behalf of the partnership. If you can, you should try to avoid doing this.
7 - SHOWING OFF
It is common to show off our wealth, but it is also dangerous. People may sue you if they know you are wealthy. But don't think that hiding all of your money is the best way to protect your wealth. Make sure your plan gives you enough coverage, and try not to put all of your stuff in your own name.
8: USE THE MONEY IN A "GOOD" WAY
People often worry that creditors will take money from their bank accounts without telling them. To avoid this kind of risk, take cash out of the bank accounts and use it to buy gift cards or checks from different stores. Big stores like Walmart and Target will sell prepaid store cards in $2,500 amounts in any amount they want. Then you can use these cards to buy food and other things you need to live. When buying or using the cards, the stores do not need to see ID. American Express gift checks can be bought in amounts higher than $25. Instead of buying your own gift checks, give your cash to friends, have them buy Amex gift checks, and then give you the gift checks, which can be used like cash to buy things and are protected against loss.
