Asset Protection Strategies

Asset protection planning involves analyzing a client’s liability exposure and implementing appropriate strategies to protect the client’s financial security. Such planning becomes all the more important for elderly clients who are no longer creating wealth and would have less time to reacquire wealth if their assets were subject to a catastrophic claim. The elderly client’s assets may be depleted or seriously eroded if they are available for the payment of claims of creditors and liability judgments. Liabilities may arise as the result of divorce, debts, or lawsuits associated with the ownership of property. Older clients with more diverse assets and a higher net worth may be subject to a higher degree of risk. Clients who might typically fall into this category would include:

Individuals who are particularly vulnerable to liability suits due to their profession.

Business owners who operate as sole proprietors, in a partnership, or who conduct business in their corporations or limited liability companies in such a manner that the corporate veil could be pierced.

Individuals who serve as corporate officers or directors and could be help personally responsible to the shareholders and certain creditors, or who could be held accountable by the regulatory agencies.

Individuals who have sold their business and who are concerned about subsequent buyer claims.

A spouse with separate assets who wants to protect those assets in the event o f a divorce of from the creditors of the other spouse.

Monitoring the Plan in Financial Process

A vital part of the financial planning process is the regular monitoring and adjustment of the plan. Any plan is based on a variety of assumptions about the future. No plan can be completely accurate because there are too many variables and unknowns that will affect the actual results. The plan is a benchmark that the client can use to measure whether he or she is still on the right path. Regular monitoring and adjustment should help ensure that the client does not stray too far from the path and risk financial catastrophe.

Personal Property Insurance (Prepared Questions)

I always consider these following questions when I secure a personal property insurance for me to lead through the right step of getting such an insurance. Here are some of what I have prepared:

1. Do I need to have a homeowners policy in force of all dwellings?
2. If no, do I have another method of insuring my residence(s)?
3. Is the dwelling coverage adequate to replace each dwelling at its current value?
4. Is the proper form of insurance in place to cover all dwelling, vacation homes and rental property?
5. Does the policy contain an inflation-adjustment rider?
6. Has the dwelling coverage been reviewed by an insurance professional within the last year?
7. Are there any policy exclusions that may prove detrimental to the client?
8. Is the personal property coverage adequate for the value of the client's personal assets?
9. Does the policy provide replacement value coverage?
10. Are items of special value itemized under a personal property endorsement or personal articles flutter?
11. Is the liability coverage large enough to quality for an additional umbrella liability policy?