I just don't want to be sued!
The issue: You’ve done a great job building assets. You might be in a job that doesn’t provide personal protection should you make a mistake. You might own a business where you’re concerned about getting sued and losing everything you’ve built. You might even have teenage children and are concerned about them getting into an accident where you could be held liable.
Your story: You’ve developed assets that your concerned others would like to get. You’ve spoken with your attorney and insurance agents about what you can do to protect yourself. When you’ve had the conversations you’ve walked away confused. Your advisors use terms you don’t understand and use the word irrevocable a lot. The word irrevocable doesn’t resonate with you.
You know you need to do something, and at the same time, the solutions that have been proposed aren’t very easy to implement. You want to trust that the advice you’re getting is the right advice.
You would like to speak with someone about asset protection and have them not use jargon. You would love it if you could put your plan in place one piece at a time. You would like it if you didn’t feel that everyone is pushing you to make decisions that you’re not ready to make.
Challenges you might have...
- I have a job where having a corporation is not going to protect me.
- I'm worried about my company getting sued and I'll lose everything I own.
- I don't want my children's actions to leak into my assets with the result of me getting sued.
- I don't want to be sued for a frivolous lawsuit and am not sure what I should do to protect myself.
- I've heard there are some things I can do to protect my assets through trusts and re-titling my assets.
- Look at who owns the assets in your family. If you're married you might want to have your spouse own your house. Look at the amount of personal insurance you have and make sure it covers what most of your losses could be.
- Have your insurance agent help you with a loss evaluation. You might be able to buy an umbrella policy that would protect your company from most devastating losses.
- Make sure you control your cash and don't leave assets in your corporation that creditors could attach.
- Review your homeowners policy and make sure that you have an umbrella policy in place that can protect you against mistakes your children make.
- Meet with your corporate lawyer and ask them to review your options for protecting what you have.
- If done properly, you can protect your assets from potential creditors. Making it difficult to get assets might help you along the way. You should speak with your attorney and other planners about options you might have.