Why Are Some Asset Protection Firms Being Labeled as Scams
While many Americans dream of starting a business, the venture carries notable risks in an era where lawsuits are common. One accident can result in the seizure of essential personal and business assets. In addition, divorces and estate taxes can rip away assets even for individuals who aren’t self-employed. Logically, asset protection firms have risen up to meet the demand for securing a person’s assets.
Defining Asset Protection
One definition of asset protection is “the concept of and strategies for guarding one’s wealth.” Asset protection companies assist individuals in securing protection for anything they own that could be considered an asset should legal challenges be mounted against them. This applies particularly to business owners or to occupations in the medical field. Many doctors and others in professional occupations think that malpractice insurance sufficiently protects them, but lawyers often go after more money than these plans will cover, leaving the individual at risk of being financially drained. Thus, people should get serious about planning for these incidents before trouble occurs. But given the rise of asset protection scams and their subsequent coverage in the media, many forgo essential protection.
Guidelines for Avoiding Scams
Asset protection companies commit to offering their clients a clear and stark contrast between their protection and the scams designed to rob them of their savings.
- They offer individualized assistance. While many kits put forward a generalized plan without regard to individual needs, reputable companies ensure clients that they will develop a personal plan for protecting assets to meet the specific needs of the individual. Dentists, doctors, lawyers, executives and small business owners each need asset protection catered specifically to their lifestyle.
- They offer one-on-one help to ensure that a client isn’t left alone in trying to sort through the cumbersome process of protecting their assets.
- They will stay with their client through any troubles and challenges, whereas some firms seem to disappear when actual legal action occurs.
- They offer real solutions, such as establishing a will or a co-ownership of a business to secure assets from estate taxes in the event of death. But regardless of what an individual situation needs, reputable companies commit to offering peace of mind to their clients.
Finding Legitimate Asset Protection Kits
If you still do not trust an outside party to secure your assets you can do it yourself, but you must be careful to avoid scams. Asset protection kits can be very solid options or dangerously unhelpful. The marks of a legitimate kit include:
- clear educational materials
- instructions for proper asset structuring
- a complete analysis of one’s assets,
- instructions for drawing up legal papers
- professional support from experts in the field
Unfortunately, many kits fall short in one or more of these areas. Regardless of what option you choose, remain vigilant, and “let the buyer beware.” Check the reputation of any company that you might consider using with the Better Business Bureau. In addition, look at reviews online in order to protect yourself.