Health Issues
Unexpected health care expenses can pose a major threat to your clients’ financial plans.
Health issues, accidents, and world events among other things can impact your clients’ financial stability. How can you help? First, identify their potential loss exposure and suggest strategies that are designed to help reduce that exposure without compromising their other estate and financial objectives.
Create an Asset Protection Plan
There are three basic asset protection techniques:insurance, statutory protection, and asset placement. By applying these techniques judiciously you can create a strong, supportive asset protection plan for your clients.
Insurance: shift the risk
Your first line of defense and the simplest way to cope with risk is to shift the risk to an insurance company. Before you do anything else, review your client’s existing coverage. If it is lacking, recommend that your client increase their coverage where necessary.
Statutory Protection: shelter assets
Creditors cannot enforce a lien or judgment against property that is exempt under federal or state law. Knowing the federal and state guidelines for these exemptions and making recommendations to ensure coverage when the need arises is a strong component of asset protection.
Asset placement: limit exposure
If your client has a significant amount of exposure to liability, you can recommend your client shift assets to family members or transfer ownership to corporations, limited partnerships and trusts.
Want to know more? Forefield can help.
Through use of our Wealth tools