Why are Digital Assets important?
Within just a few years, digital assets have become important in many areas of our lives. We must plan for what happens to our digital assets on death or when we lose mental capacity, for a number of reasons:
Financial Value; such as PayPal accounts, virtual bank accounts, online gaming accounts; bitcoin; photographs; popular domain names or online businesses;
Protecting your assets is one of the most important financial decisions you will ever make. No matter how many (or few) assets you have, you should make an effort to protect them. When planning for protection, here are 5 of the common mistakes people make:
- Lack of Knowledge
Lots of people misunderstand how asset protection works. Some people believe asset protection makes them “judgment proof.” Even if your assets are protected, you may still cop an adverse court judgment. In some cases, efforts you have made to protect your assets can be overturned. This is why it is important to work with a professional when creating your protection plan.
The benefits of Asset Protection and Planning
How many million-dollar lawsuits against homeless people do you hear about? None. That’s because lawsuits aren’t filed against poor people; they are filed against those with enough assets to make the expense of litigation worthwhile.
We all need to maintain an acute awareness of what can happen in ‘the modern jungle.’ None of us want bad things to happen to us and our families, such as bankruptcy, creditors, predators, gold-diggers, the ATO… but we need to keep our guard up against others who may not share our foundational assumptions of fair play and justice. Other, perhaps more aggressive ideologies, could run right over our sweet & trusting natures if we let them.
‘Asset Protection’ is about being prepared for possible outcomes (contingencies) and doing what you can to minimise the damage and prevent the worst outcome from happening.
Families aren’t always easy. We’re bound to them by blood and history, circumstance and duty. We love them, and sometimes, if we’re really lucky, we like them too. We rarely get to choose them.
At some point in our lives almost all of us will experience some challenging times in dealing with individuals in our family.
It could be the consequences of dealing with misfortune such as illness or unemployment.
It could be your son’s unfortunate choice of girlfriend.
Maybe someone has an inflated sense of entitlement & expectation, or is lacking in appreciation for what you’ve done for them.