What would happen if one of your key clients faced a lawsuit or civil judgment, or was forced to declare bankruptcy? Have they consulted an attorney to discuss the legal options available to protect their wealth? For many people, asset protection is an afterthought or not thought of at all. That is why it is important to shield assets before something happens. A good asset protection plan can help maintain a standard of living and preserve the ability to pass assets to heirs or charitable organizations.
As an advisor, addressing asset protection can provide real benefit to clients while broadening the value proposition associated with your practice. This type of conversation can be a key differentiator with high net worth clients and prospects. To help facilitate this discussion, Putnam has created a comprehensive questionnaire highlighting potential risks your clients may face and possible strategies to mitigate those risks. For example, do you have clients who serve as board members on local charities? Are they aware of the potential liability risks? Use this questionnaire to address critical asset protection needs with current clients or incorporate it into discovery conversations with prospects, which may lead to better client acquisition, deeper relationships, or more high-quality referrals. You will likely find that other advisors or firms have not addressed this important need. Lastly, it is critical that clients consult with a qualified legal professional knowledgeable in specific state laws on liability risks and potential options.
For more information, download our Asset protection: basic principles and strategies for safeguarding your wealth investor education piece, or watch our Asset protection is a key part of financial planning video series.