The Importance of Protecting Your Assets
One of the biggest lessons in your journey to success lies not just in creating your wealth, but also protecting your wealth. Every self-made success story realizes that no-one is invincible, and as such, smart planning is essential to ensure that your assets are protected even when you are no longer around. In essence, protecting your assets allows you to leave a legacy behind once you have made your fortune.
How To Protect Your Wealth
There are three important steps to begin the process of protecting your assets. These steps are essential for anyone who wishes to ensure that the wealth you have worked so hard to develop is protected long after you are gone.
These steps include the following:
Step 1 – Create a Will
The first step in protecting your assets is to get in touch with an attorney and create your will. If you have one already, you will need to ensure that it is updated on a regular basis. Your will should include intentions in regards to guardians for your children, points on how you would like your assets to be distributed, any donations to charities, medical procedures, executor information as well as arrangements for your funeral. While these may seem a little morbid, it is essential to state your intentions to ensure that your final wishes are carried out.
Step 2 – Develop an Asset Fact Sheet
The next step is to develop an asset fact sheet. This sheet will indicate where to find your assets if your executor or beneficiaries need to find them. Included on this sheet should be the names of various financial institutions, plus account numbers, the location and details of security deposit boxes, property records and deeds along with additional investment account details. Specific figures should not be mentioned in this list however, to ensure that your asset sheet is secure.
Step 3 – Communicate Your Will To Loved Ones
The final step in the lesson on wealth protection is to let your loved ones know that you have created a will and asset fact sheet. You should let them know that you have placed these documents in a deposit box, entrusted these documents to the family attorney, placed it in a safety box at home or taken whatever other measures you have chosen to protect these documents. Your loved ones should know that you have a plan to ensure that your wealth will be provided to them in the event of you not being there to support them anymore. This will ensure peace of mind for all.
Taking these steps will not take too long for you to do, but the value you and your family will get from putting them into place is impossible to measure.