How To Protect High Income, Bonuses & Dividends
How to protect high income? I am an executive of a start-up company that made me part of the executive management. My income from my position with my salary, bonuses and dividend income from my stock will afford me a mid to high se
ven figure income per year. I want to protect these assets and any future acquired assets. How can I best achieve this? George M., Florida
You are smart to ask how to protect high income and plan your asset protection ahead of time. If you wait until there is a problem you always lose. There are certain questions you need to consider first. How risky is your business? Are you a detail person? Do you have a family? These questions will help you or you and your attorney know what vehicles you should use in you asset protection.
You are living in a great state to protect your home because Florida has an unlimited homestead provision. It is always a good idea to hold your home in your own name for tax reasons and Florida makes this easy. I recommend that you form a living revocable trust, no matter your personal situation a living trust is always a good way to start.
Depending on your other assets and your family situation you could consider forming a Family Limited Partnership FLP, or a Limited Liability Company (LLC) to hold those assets you want to protect. These entities if well maintained will offer a good liability shield. Your planning should include not just liability but also tax considerations and ease of management. I have a “Money Making & Asset Protection Boot Camp” to help people like you on a personal level.
