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Three ways to protect business assets in financial downturns

While the market has not shown much of the volatility that investors came to expect over the past few years, abrupt changes to the market can threaten investors’ confidence and lead to further financial turmoil. Because of this, prudent businesspeople plan for market tremors. In the same vein, small business owners can safeguard their company’s holdings when the market goes awry. This post will highlight a few options.

Protect bank accounts – The possibility of your bank failing is not as likely now compared to the last great recession, protecting a company’s bank holdings is a good idea. You know that the FDIC will insure up to $250,000 in deposits per depositor in a particular institution. So if you have more than that amount in a bank, it may be helpful to divide your holdings among a number of banks.

Avoid panic on selloffs and market corrections – As the old adage says “what goes up, must come down.” This means that changes in the stock market should not lead to drastic measures. Indeed, a 20 percent change is something to be concerned about, but a three percent adjustment should not cause people to call their brokers.

Minimize the potential for estate taxes – Government levies on large estates being passed may only apply to a chosen few, but it is in a business owner’s best interest to ensure that their estate does not exceed the $5.43 million threshold where federal estate taxes would apply. Even if you believe this is a large number, it is also important to know if your estate would be subject to California’s estate tax threshold.

If you have additional questions about the legal protections your business may be entitled to, an experienced attorney can advise you. 

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Klein & Wilson

Klein & Wilson
4770 Von Karman Avenue
Newport Beach, CA 92660

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