Thursday, March 20, 2014
Legal planning is important for business owners, and asset protection is one aspect of planning that owners should consider. There are various ways that business owners can protect assets from possible future litigation. The first step is good liability insurance coverage.
Another protection is equity stripping, or reducing the business owner's equity and investing it areas less likely to be included in lawsuits, such as private placement life insurance, which may have tax benefits as well. Offshore asset protection trusts and corporate structuring can also be helpful, but require expert involvement to be done correctly, because of the legal issues involved.
See Frank W. Seneco & Evan Jehle, Asset Protection For Business Owners, Private Wealth Magazine, Mar. 7, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.