A single multi-million dollar judgment can easily exhaust liability insurance coverage, exposing personal assets to creditors. Sometimes, the expense of simply defending against a lawsuit can wipe out a person’s entire life savings. After a life-long struggle to build assets and provide for retirement and some of the small pleasures of life, it seems very unfair to have your financial security snatched away just when it is needed the most.
Everyone is vulnerable to lawsuits. If you own a home, drive a car or come in contact with the public, you are subject to liability suits. If you have a business of any kind, you are exposed to some form of liability. There are many forms of asset protection. Some methods are expensive, but provide certain individuals with sophisticated forms of asset protection. Other forms of protection are not sophisticated at all yet provide very significant protection for the average person. The overriding principle in asset protection should be to plan ahead.