When deciding on an asset protection plan, it is helpful to differentiate between secured and unsecured assets. Examples of secured assets are:
- Bank accounts owned by an individual
- Insurance policies
- Stocks owned individually
Some examples of unsecured assets include:
- Commercial properties
- Motor vehicles
- Real estate
- Business tools and equipment
Unsecured assets need more protection than the secured assets because they have less protection under law.
Annuity asset protection offers two tools to safeguard assets: probate processes and contestability. These two tools help to keep claims from creditors upon the grantor’s death at bay. Depending on the law of the state where the grantor resides, the annuity will guard the assets from claims of creditors and lawsuit. Consult an asset protection professional who is familiar with the laws of the state in question.
Converting assets into fixed streams of assured payments can be a hassle-free type protection. This meets the legislative prerequisites and is done within an irreversible pension plan. Furthermore, taxes can be taken into account if it is a well designed asset protection structure. You are also going to receive advantages like spending less time, money and effort. This process can be more affordable than others and retains privacy.