Asset Protection for High-Net-Worth Individuals

People who own a sizable asset, a minimum of $ 1 million in liquid financial assets, are known as high-net-worth individuals (HNWI). A big challenge for such individuals is the protection of their assets.  If you are an HNWI, devising an asset protection strategy must be your priority.

This blog discusses effective asset protection strategies, including purchasing the right insurance for high-net-worth and other relevant details that may help you take the proper steps toward potential asset growth.

Deposit Insurance

The government guarantees the safety of your money deposited in an insured bank up to a limit of $ 250,000 per account. This assurance is offered as deposit insurance provided by the Federal Deposit Insurance Corporation (FDIC), a government agency that secures your bank accounts. By having several types of accounts in a bank, you can safely secure a sizable portion of your assets as bank deposits in the same bank with deposit insurance.

Securities Insurance

You can also secure the assets, including cash and securities, that you invest in an insured brokerage agency with securities insurance. This coverage, provided by the Securities Investor Protection Corporation (SIPC), that extends up to $ 500,000, covers losses that may occur due to the collapse of the brokerage or theft from your account.

Personal Insurance

You must ensure sufficient liability coverage besides having adequate security for your bank accounts and brokerage investments. This is crucial insurance for high-net-worth individuals as it covers you for expensive lawsuits. The insurance coverage that you may need includes:

  • Personal Liability Insurance
  • Umbrella Insurance
  • Professional Liability Insurance
  • Business Owner’s Policy
  • Directors and Officers of Insurance


What is the tax exemption for gifts you give away during your lifetime?

According to the lifetime gift tax exemption set for the current fiscal year, you can gift up to $ 12.92 million of your assets during your lifetime without paying any taxes.

How much of your asset can you legally gift to a family member?

While there is no limit to the amount you may gift a family member but if the net worth of the asset exceeds $ 17,000 in 2023, it will be taxable. However, if a couple offers the gift, they can each pay $ 17,000 to the member totaling the asset worth $ 34,000. Another option to gift more than $ 17,000 tax-free is to include the balance in your lifetime gift amount.

Must you report the gift to the IRS?

Reporting about the gift to the IRS in your tax filing makes it convenient for the recipient. They won’t have to file separately for tax exemption on the said gift.

Secure Your High-Net-Worth Assets with J. Archer Insurance

You can protect your assets with the right insurance for high-net-worth coverages that provide comprehensive financial security not only for your personal and business assets but also for your assets, such as bank deposits and investments.

Contact our team today if you are looking for tailored wealth strategies for asset protection in Houston, Texas. At  J. Archer Insurance Group, we offer personalized insurance for high-net-worth that secures all your assets in a single portfolio. You can directly ring us at 281-501-8331.

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