|
|
|
Articles
|
| Asset Protection |
writes, "From the Desk of Art Sabino, MBA:
Due to the ever-growing complexity of our economic environment, finding the right answers to most of our financial questions is an awfully difficult thing to do. This is true especially when it comes to discovering the right strategies to protect our financial assets. Yes, it is quite a struggle to put together an asset protection plan that works. However, it is something every individual or entity with assets must have. There are just too many factors in our economy that tend to destroy our hard-earned assets. If we don’t have a good plan, we could lose a major portion or even all of our assets in an instant. An asset protection program is definitely not only for the wealthy.
"
|
Protecting your Assets from Lawsuits
An accomplished physician lost all of his approximately $5M assets due to an accident that was not even his fault. One day. he attended his mother’s birthday celebration at her home. Before meal, his mother wanted to buy something from a nearby supermarket, but could not use her car because some guests parked their cars in front of her garage. Her son therefore volunteered to let his mother use his car.
On the way to the supermarket, his mother suffered a stroke. Her son’s car ran into several vehicles and finally slammed into a building. Several people were badly hurt and the building was severely damaged.
A number of lawsuits were filed and the total claims mounted to over $5M. The auto insurance company denied the physician’s claim on the ground that his mother was not listed as an authorized driver of his vehicle. Worst of all, the court judge ruled that since the physician was the owner of the vehicle, he should indemnify all the parties who suffered damages. Since the good doctor did not have a well-designed asset protection program, he lost all his estate that he spent many years to put together. Don’t let this unfortunate event happen to you. Spend some time to diligently find the strategies with the help of a qualified professional aimed at protecting your estate from its biggest threats—lawsuits.
About 95% of home-owners don’t have a plan that properly protects their homes, which probably is the most valuable asset they own. If you are one of them, you owe it to yourself and your family to start getting a good plan to protect you from several threats. One of the most common threats is someone suing you for personal injury sustained while working on your property. Another is a person or company suing you for unpaid bills. You can lose your home either way if you are not protected.
Here are some suggestions for you:
1. Buy a good umbrella insurance coverage. Generally not expensive, between $ 150 to $ 300 per year for a $1,000,000 coverage (suggested amount,) this policy will protect you in case you or any member of your family causes an injury or death when driving, or if someone is seriously injured on your property.
2. If possible, don’t let other people stay in or use your home while you are away or let anyone drive your vehicle.
3. If your equity in your house or your total net worth is at least $50,000, you should see an experienced or qualified asset protection professional for help in setting up a Family Limited Partnership. If properly set up, it will be an excellent way to protect what you own from lawsuits.
The requirements for preparing a good asset protection plan vary depending on the individual’s age and financial situation. Your professional asset protection planner should be able to give you his or her best recommendations based on your personal and financial situation. If you are interested, please call me at (858) 610-2636 or you can email me at ablanemall@aol.com to request for more information. I certainly can help you get started.
|
Posted on Feb 17, 2004 21:04pm.
(Return)
|
|
|
|
|
Categories
|
|
|