2 Ways To Protect Your Assets In A Lawsuit
Lawsuits are very common nowadays—some of them are merited and others are frivolous. The sad thing is that many people will be caught up in a stressful lawsuit at some point in their lives, and it could cost them a great deal of money. This is why it is important to be preemptive in protecting yourself and your assets. Here are two suggestions for keeping your estate safe.
1. Create LLCs
One of the best things that you can do if you are a high-risk person for being sued is to create LLCs. This means that you have separate business entities. Each LLC is separate from the other. Then if you are sued for one LLC they cannot touch the assets or property in another LLC.
For example, assume you are a doctor and you are sued by a disgruntled patient. If you have not structured your medical practice to be separate from you personally, then your house, your car, all of your assets could be included in the lawsuit. This means that everything that you have could be taken from you. If you have your house in one LLC and your medical practice in another LLC the person suing you wouldn't be likely to touch your home and private assets. This is why creating LLCs is such a good idea; especially for people who are in high-risk professions.
2. Get Assets Out Of Your Name
Another great way to protect your personal assets is to get them out of your name. There are a couple ways to do this. One way is to put them in your spouse's name. Some high-profile businessmen or women will put their house and cars in their spouse's names. That way if they are sued they look like they have no assets in their name. The only problem with this option is that if you and your spouse were to divorce, it would be hard on the settlement. This is why it is important to consider the strength of your marriage before you take this option.
Another way to do this is to put all of your assets into a trust. The trust is the owner of your assets, so that if something were to happen you and the other trustees would have joint ownership over the property and it would be hard to include in a settlement.
These are just a couple ways that you can protect yourself during a lawsuit. Talk with a lawyer like Mauro Savo Camerino Grant & Schalk for more information on how to best protect your assets in various cases.