There are a number of things company owners in New Jersey can do to protect their businesses and personal assets from the effects of business litigation. Believe it or not, proper estate planning is one of them. What does estate planning have to do with business litigation?
When a person owns a business, that is their whole life. Often, everything they have is tied up in their company. It can take years to build a strong, successful business, and it only takes one lawsuit to bring everything crashing down. Sadly, personal assets may be on the line when this happens, unless the proper protections have been put in place.
Trusts can offer some protection if they are written the right way. In order to protect personal assets from the effects of business litigation, it is necessary to include something referred to as firewall protection in a trust document. This is simply a blocker that protects assets included in the trust from being taken in litigation. This is not a protection typically included in a basic trust document; writing it in has to be requested.
Estate planning is not something many people in New Jersey think about until later in life. For business owners, it is something they should consider doing as soon as possible. Not only will it provide protection for one’s family, but it will also provide protection for one’s business. An experienced estate planning attorney can assist local business owners in creating estate plans that are comprehensive, thorough, well-thought-out and tailored specifically for their needs.