Asset Protection For The Successful Entrepreneur

Jack Garson Published in Forbes.com

As Published on Forbes.com

By:Jack Garson | August 30, 2019

You just crashed your multimillion-dollar Bugatti. People are hurt and lawsuits are being hurled. Your life's work is in jeopardy. Disaster rarely comes with advance warning. Cover your assets before trouble hits

One instant you could be celebrating your 60th birthday and retirement from a successful career in business. After accumulating what is affectionately known as “F.U.” money, you’re testing out your new $2.6 million Bugatti Chiron on a curve at 190 mph with Snoop Dogg blasting on the diamond-studded Accuton speakers. Things can change quickly and disaster rarely comes with advance warning. Suddenly, you’re in an accident. People are hurt. Things are fuzzy. But still, you don’t think you’ve done anything wrong. That does not stop the piranhas (you say “lawyers”–tomato/tomahto). Before you have time to change into some dry underwear, lawsuits are being hurled at you and your spouse with the frequency of North Korean short-range missiles.

In a soon-to-be somber moment, one of your grim-faced advisors lets you both know that your life’s work—the house, the investment accounts, your art and, of course, the warehouse of antique codpieces—are all in jeopardy. You’ve accomplished a lot, but you forgot to protect your assets.

Quite a few entrepreneurs achieve great success and financial security. But, in our society, a wealthy person is a target and it’s always open season. As my father-in-law taught me, “It is easier to make money than it is to hold onto it.”

The list of risks to your assets is almost endless. Sometimes the most seemingly innocent activities can create the greatest threats. In one famous case, rocker Tommy Lee hosted a pool party for his child’s birthday. In a tragic accident, a young guest drowned. The rock and amateur film star were sued for $10 million. Ultimately, the jury ruled in favor of Lee. But a loss would have set him back a Malibu mansion or two. Even for an ex-headbanging multi-multimillionaire, that would’ve stung.

Still, you don’t have to be a rock star to be a target and jeopardize your life’s work. You could fall asleep smoking a cigarette and burn down a hotel. Or your lovable dog could go all Cujo. You could be a brilliant brain surgeon and have a bad day at the operating table. Again, life being what it is, you get no advance warning and there’s almost no limit to the threats. So, cover your assets.

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