Protecting Assets From Losses Through Litigation
Asset protection planning is a vital part of lifelong financial health for successful people. No matter whether you amass your wealth through inheritances, luck or earnings, keeping and growing what you have is as important as acquiring it in the first place. As you reach for your goals, prepare for your retirement years and consider your future legacy, liability in a negligence lawsuit is s loss that you need to guard against.
Safeguarding assets against potential negligence lawsuits should include
- Preventing lawsuits
- Preparing to fight back if lawsuits come about
At Reed Law, PLC, we help people of all income levels assess their areas of vulnerability. Our attorneys look for areas that may cause our clients to lose money and property if they are sued for any reason.
Key Strategies For Protecting Assets From Negligence Lawsuits
You may have thought through the possibility of being sued over a car accident, a slip-and-fall accident by someone on your private or commercial property or accusations of libel and slander. These are all examples of causes of lawsuits through accusations of negligence. Methods of protection include:
- Insurance, including car, home and business loss insurance
- The creation of business structures, including limited liability companies and family companies
- Utilizing dynamic investment vehicles that protect personal assets
- Estate planning, including the creation of trusts property titling such as joint survivorship; and other creative methods of protecting assets
These are all effective ways of protecting your assets from potential losses through lawsuits.
A Couple Of Common Questions About Lawsuits And Asset Protection
Is a homestead protected in a lawsuit?
Homestead exemptions are good for tax purposes and in case of bankruptcy, but there is no legal protection in one’s place of residence in case of a judgment against a homeowner in a civil court. On the other hand, appropriate umbrella insurance coverage can go a long way in protecting your home in case you are sued for someone’s injuries or losses. Additionally, Land Trusts can be used for certain protection as well as other strategies such as debt shields.
Will a limited liability company (LLC) protect you as a business owner from possibly losing your home in a lawsuit?
An LLC provides a level of protection but some litigants have successfully sued and won judgments from individuals as well as from their companies. The LLC must be properly designed and maintained to provide the necessary protection. Sexual assault and libel cases are examples of lawsuits that can snare individuals despite their leadership roles in LLCs.
The information above may not apply to your unique circumstances. See a lawyer for personalized counsel regarding these or other topics.