Asset Protection Myths Demystified

An asset protection attorney will tell you that more than half the people that get sued don’t make a big mistake. Many business people believe that since they have never been faced with a lawsuit before, they cannot be sued in the future. Wrong.

Example

Jane was a nurse for many years, and during this time, she never faced any complaints. However, a few years after retirement, she was sued for handling the estate of her father negligently.

In this example, while Jane thought she was immune to lawsuits in her nursing career, she got sued for something unrelated to her line of work.

This tells you that a lawsuit doesn’t have to relate to your career. You might work cautiously enough and still get slapped with a lawsuit long after you retire.

Anyone that drives on the road is likely to get sued. This is because accidents happen when you least expect them to, and when they do, they lead to a big lawsuit that the insurance costs might not be able to handle. So, everyone is a potential target for a lawsuit.

However, business people and professionals have a higher chance of getting sued compared to average Joes. This is because they are in contact with different people daily.

How would it feel like to lose the little that you have collected painstakingly over a few years? Ask any asset protection lawyer, and they will tell you that it doesn’t matter how much you own – as long as you have some assets, you need to protect them.

With the little that you have, any interruption would mean losing it all. It is, therefore, vital that you protect your assets to make more out of it.

As asset protection lawyers, we receive many calls from people in New York that have been slapped with lawsuits and creditor issues. Most of our clients have only a few dollars in their accounts, modest investments, or a small house.

Well, this tells us that wealth is a relative term. Whatever you own, try and protect it because this is what will bring you more in the long run.

For many people, the idea of having insurance makes them procrastinate on asset protection. Although it is a good idea to have insurance for your property, it comes with limits.

When a problem occurs, you can get sued for way more than what your insurance can cover. Additionally, liability insurance can only cover a select type of issue.

As you argue about insurance and compare it with asset protection, have you ever seen insurance that protects against bankruptcy or divorce? The good thing is that asset protection does this when set up correctly.

However, we aren’t saying that insurance is a bad idea because it might cover some issues and circumstances. However, you need to have both for maximum protection.

The bad thing about insurance is that you are faced with many exclusions – small loopholes that make the insurance company refuse to pay. Additionally, the insurance company takes its sweet time to fulfill claims.

Moreover, you aren’t so sure that the insurance company offering the policy will still be in business when things happen. We have witnessed many insurance companies apply for bankruptcy when their claimants thought that the company would be there for years to come.

Insurance isn’t all useless – it has its role to play in protecting your assets. However, regard it as the first step in asset protection. Liability insurance cannot replace a well-crafted asset protection strategy.

Many people shy away from asset protection because they think it is too expensive for them. The good thing is that protecting your assets isn’t expensive compared to what you might lose if you don’t put proper asset protection measures in place.

To begin the asset protection process, talk to your lawyer to assist you in coming up with the best strategy. You can get tips and guidance on what to do so that you don’t fall into the trap of lawsuits.