Asset Protection against Liability Risks
Asset Protection Against Liability Risks – Massachusetts Attorney
Asset Protection against lawsuits and liability risks can be an integral part of an Estate Plan.
What liability risks should I be concerned about?
An act as simple as driving your car can put you at significant risk of liability.
Many folks under insure when it comes to auto insurance. Most attorneys never address insurance coverage. We are different. We work with our clients to ensure that they maintain adequate auto insurance coverage.
For instance, if you have only $50,000 of liability protection under your auto insurance, and you injure someone in your car, your insurance will be of little value. Who really sues for less than $50,000?! The fact is, victims of auto accidents routinely sue for many hundreds of thousands of dollars. And after the insurance company pays its $50,000 of coverage, guess where the victim’s lawyer is going to next look for money? That’s right: your home and savings.
We guide clients on setting the optimal levels of coverage on your auto and home policies.
If my home is in trust, I am protected against liability, right?
Wrong! Most trusts offer no protection to you if someone sues you. to the extent you have control over the trust asset, your trust asset is exposed to liability risks.
What strategies can I consider to achieve better liability protection?
- Homestead Statute – In March 2011, the MA legislature instituted a new Homestead Statute. With effective Homestead coverage, you can protect $500,000 or more depending upon the circumstances. The challenge is that few people take advantage of the Homestead Statute. And many who have tried to record a Homestead in the past do not know if it remains effective. You need the expertise of a Qualified Elder Law Attorney.
- Limited Liability Company (LLC) – For some people, creating an LLC can add tremendous liability protection. An LLC requires careful planning to ensure that it maximizes liability protection and integrates with the rest of your Asset Protection planning including your Estate Plan.
- Asset Protection Trusts (APTs) – For some people in dangerous jobs or with high risk professions or business, higher level planning may be necessary. A Qualified and experienced Tax and Asset Protection Planning Attorney can guide you through the available options to create a valid and effective Asset Protection Trust.