Ideally, individuals should begin protecting assets when they start accumulating wealth. This typically occurs after they complete their education and training, at which point, a professional such as a physician might join a medical practice. When valuable assets begin to accumulate, it is crucial to ensure that they are correctly titled, and to consider what types of entities might limit liability from potential creditors.
Asset protection is one component of risk management within a financial plan. What works for one person may not work for another. Each financial plan developed by our advisors is tailored to the individual, a process that involves understanding the goals and motivations of the individual or couple, executing tasks in a timely manner, and regularly reviewing and updating the plan.
Safeguarding assets can come with trade-offs. One concern we often hear regarding certain asset protection strategies is that the asset owner is hesitant to give up full control of the account, as may be required when establishing multi-member LLCs or irrevocable trusts. These arrangements often involve registered agents or trustees who act as gatekeepers to potential creditors. Additionally, there are costs associated with hiring attorneys to create and implement these entities and tax professionals to comply with reporting requirements.
Implementing strategies for personal asset protection requires regular review of your financial plan and a comprehensive understanding of state and federal laws and regulations. Your Curi RMB Capital advisor can help you assess your risk level and make a plan that’s right for you. If you have questions, I encourage you to reach out to a member of our team to start a discussion today.
The opinions and analyses expressed in this presentation are based on Curi RMB Capital, LLC’s (“Curi RMB Capital”) research and professional experience are expressed as of the date of this presentation. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future performance, nor is it intended to speak to any future time periods. Curi RMB Capital makes no warranty or representation, express or implied, nor does Curi RMB Capital accept any liability, with respect to the information and data set forth herein, and Curi RMB Capital specifically disclaims any duty to update any of the information and data contained in this presentation. The information and data in this presentation does not constitute legal, tax, accounting, investment or other professional advice.
