In our litigious society, we are all vulnerable to being sued, especially
those with significant assets. If you happen to work in a field where
lawsuits are commonplace, for example, you’re a doctor, a home builder,
a lawyer, an architect, or business owner, a lawsuit may be one of your
foremost concerns.
According to a study published in the
New England Journal of Medicine, 99 percent of doctors who practice in a high-risk specialty will encounter
at least one medical malpractice suit before they retire.
What about you, are your hard-earned assets at risk? If they are, the good
news is that there are estate planning tools that can shield vulnerable
assets and property, such as your business, your home, and your bank accounts.
You don’t want your assets targeted if you are sued. By taking steps
to make you a less attractive target to someone who is eager to obtain
your money, you can put yourself in the best position for reaching a favorable
settlement – if you ever are sued.
How can I insulate my assets?
At the top of your list – buy adequate insurance for yourself as
well as your business. Insurance is your first line of defense in protecting
your assets. Work with an experienced estate planning attorney to ensure
that you take out sufficient coverage for your automobiles, home, and
other belongings.
Do you own a business? If so, make sure that you update your general liability
coverage on a regular basis. Check with your lawyer to see if you should
purchase employment practices and professional liability insurance.
If you are married you may want to rethink how your assets are titled.
If you have jointly titled assets, a creditor may force you to liquidate
your jointly-held assets to collect on a debt.
Depending on your state’s laws, it may make sense to protect your
assets by ensuring that they are titled to your spouse alone.
If you want to take this approach, make sure you are familiar with your
state’s marital property division laws, especially if you live in
a community property state, such as California or Nevada where each spouse
is entitled to half of the marital property, regardless of whose name
is on the title or account.
We are only scratching the surface for the asset protection strategies.
To find out which ones are right for you, talk to an estate planning lawyer
in this directory.