“It wasn’t raining when Noah built the ark, But when the rains came, those that failed to get into the ark perished.”
If you have never faced a lawsuit from your creditors, nor been in a financial crisis before, then you might think that asset protection planning is useless and meant for other people.
Life is unpredictable – you don’t know what will happen tomorrow. Protecting yourself and your family against situations that might happen unexpectedly is a crucial element of estate planning.
Asset protection is all about having the proper protection against any threat to your financial possessions. Remember that people have had wealth before, and those that protected it adequately ended up maintaining it for ages, while those that failed to protect it ended up losing it.
Your asset protection lawyer in New York can tell you that your wealth is prone to various threats such as tax claims, lawsuits, bankruptcy, and creditors.
It is a Lawsuit-crazy State!
As we understand, New York has become a lawsuit-crazy state. A look at the local news or the internet tells you that thousands of businesses and individuals get sued every year.
Tidbit: There were 21.5 new medical malpractice lawsuits in New York for every 100,000 people in 2018 only.
We have seen people and businesses that have been sued just once, and they lost everything they owned. We have witnessed lawsuits that dragged on for years, and at the end of it all, there was only one loser – the business.
It is also true that when you work with an asset protection lawyer in New York, the process becomes shorter, and your chances of winning the lawsuit increases.
If you procrastinate and end up losing your assets, wouldn’t you have desired that you had done some prior planning to secure the assets?
Threats to your property don’t just arise from lawsuits; we also have situations such as bankruptcy, tax problems (state or federal), and divorce.
Tidbit: The US experiences divorce rates of up to 50 percent. This tells you that it is highly likely that at some point in your life, you might have a threat to your wealth.
Threats to your assets come from many areas, but the biggest fear that people have is the fear of being slapped with a lawsuit, be it from creditors or your ex-spouse.
Lawsuits arise when another person (the plaintiff) claims that you (the defendant) are liable for some damages that you have to pay for.
Let us look at the different types of risks to your wealth and what they mean.Direct Civil Liability
This form of liability occurs when you cause damage to another person. The rule here is simple – when you cause injury to someone, you need to pay for the damages. If you have insurance, you can use it to pay for these damages.
The payment is aptly named “compensation” for the damages that occurred.
Frivolous Lawsuits
Some people are on the lookout for quick gains for small damages. This is where a person seeks excessive payments for a minor injury. We have had clients who came in with a complaint – a small dent on another person’s vehicle, and the plaintiff goes ahead to ask for thousands of dollars in compensation.
The good thing is that judges also smell out frivolous lawsuits from a mile away, and most of them end up being dismissed.
Indirect Liability
Here, the liability falls on someone other than the one that committed the offense. This liability has a more significant threat to wealthy individuals because the plaintiff attaches responsibility to the person who is most likely to pay a considerable sum of money rather than one that can’t do so.
Lingering Liability
Have you ever been in a situation where you committed an offense, only for the case to come up years later? This is called a lingering liability. For instance, if a roofing specialist installed a new roof on your home only for it to be blown off a few years down the line; you can sue the company for damages.All these liabilities can happen to you anytime, especially if you own a business. The good thing is that when you work with an asset protection lawyer in New York, you reduce the impact.
Yes, You Need Expert Assistance
When these things happen, many people rush to pay the liability and forget that they might not be on the wrong. Make sure that you visit our offices to talk to an asset protection lawyer before you rush to make a settlement.
