Why Should I Consider Asset Protection Planning?

It’s a sad fact of life and business that one day you, your spouse or child might be faced with a lawsuit or financial catastrophe, such as:
 
  • An automobile accident with an uninsured  or underinsured motorist
  • Causing an automobile accident with damages beyond the limits of your own automobile insurance policy
  • Divorce
  • Lawsuit resulting from damage or injury taking place at your home or on your property
  • Lawsuit from an disgruntled employee or business partner
  • Professional malpractice allegations
  • Bankruptcy
  • Health crisis (did you know that medical bills are the number one cause of bankruptcy?)

Asset protection can help to:
 
  • Have peace of mind that you and your family are protected
  • Reduce or avoid probate and estate taxes
  • Reduce your exposure to malpractice claims
  • Potentially save money on liability and malpractice insurance if less coverage is needed
  • Settle lawsuits more quickly and at reduced amounts—once a plaintiff realizes your assets are protected, they’ll be less inclined to incur any more legal costs knowing that their likelihood of recovery is slim
  • Protect against exemplary, treble, or punitive damages which typically are not covered by liability insurance policies
  • Protect against the bankruptcy of your insurance carrier—there’s no guarantee that they’re still going to be in business when you need them


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Just because someone is careful or competent does not mean that he or she will never be sued or subject to a malpractice claim.  We live in a very litigious society and juries like to blame professionals or business owners because they are perceived to have the wealth and/or insurance to pay damages.  And unfortunately, even frivolous claims can cost a significant amount in lost time and legal fees.  The more barriers you can have in place, the more likely the claim will be dropped faster or never initiated at all.