While many people take steps to secure the distribution of their assets after they're gone, it's less common to think about asset protection right now. In a litigious society, this could be a grave oversight. You can take a number of steps to make sure you don't lose your most important possessions. Some are simple and relatively inexpensive; others are more complicated and costly.
There's one caveat: Don't wait until you're in a position to be sued to take action. Do it now.
"Anything you do to protect your assets is useless against anyone who has a claim that could be filed today," says Frank Armstrong, founder and CEO of Miami-based Investor Solutions."You need to do it not before the lawsuit is filed, but before the cause of the action occurs. Otherwise, it's ruled fraudulent conveyance to defraud creditors."
For example, if you don't already have coverage and someone trips and falls at your garage sale, it won't help you to buy an umbrella policy the next day in case you get sued.