Once you have acquired assets (this includes your business and real estate) especially those that are producing sufficient passive income, you should look to trusts and insurance combos to protect all of your hard work. Don’t let yourself be an easy target for a lawsuit.
Ideally, you want to control your assets but not own them. On paper, you want to look “poorer” than the person suing you. Trusts allow you to do that. Also, in the beginning, a lot of people think that a trust is a trust. Know that there are different trusts for different situations and assets. You need the right education to know what you need and ask the right questions to get it done properly. Start now, even if you don’t have a lot to protect yet.
One of the beautiful features of trusts is that they avoid probate. This can save Tens of thousands of dollars for your future generations.
Also, think about how you can protect your wealth for your future generations or a specific charity if that is important to you. Review your estate planning annually and immediately at every major life event to keep it accurate (this includes buying or selling your house or winning the lottery).