Today we start our series on protecting your assets in case you are sued. 

Many people mistakenly think that they don't make enough money to be a target for getting sued.  The reality is that this is simply not true.  

According to the CDC, 4.5 million people are bitten by dogs each year.  Although sometimes these are just harmless incidents, some have resulted in lawsuits resulting in multi-million dollar settlements.  General homeowner's insurance will usually cover $100,000 to $300,000 in liability.  The homeowner is responsible for any portion of the settlement above the limits of liability.

If you have a pool, you are also at risk.  In fact, a common misconception is that only wealthy families and people in high-risk professions need to have an asset protection plan. But in reality, anyone can be sued. A car accident, foreclosure, unpaid medical bills, or an injured tenant can result in a monetary judgment that will decimate your finances.

What Exactly Is Asset Protection Planning?

Asset protection planning is the use of legal structures and strategies to safeguard property that creditors might snatch away, by completely, or, at the very least, partially, protecting it from the creditor’s reach.

Unfortunately, this type of planning cannot be done as a quick fix for your existing legal problems. In fact, if you transfer assets to shield them from existing creditors, it could be considered a fraudulent transfer, resulting in legal penalties. Instead, you must put an asset protection plan in place before a lawsuit is imminent, let alone filed at the courthouse. So, now is the time to consider implementing one or more of these tips.

Below is the first of three tips that you can use right now to protect your assets from creditors, predators, and lawsuits.

Asset Protection Tip #1 – Load Up on Liability Insurance 

The first line of defense is insurance, including homeowner’s, automobile, business, professional, malpractice, long-term care, and umbrella policies. Liability insurance not only provides a means to pay money damages, it often includes payment of all or part of the legal fees associated with a lawsuit. If you do not have an umbrella policy, then now is the time to get one, since it is relatively inexpensive compared with more advanced ways to protect your assets. You should also check all of your current insurance policies to determine if your policy limits are in line with your net worth and make adjustments as appropriate. You should then review all of your policies on an annual basis to confirm that the coverage is still adequate and the benefits have not been stripped to maintain the same premiums. 

Contact Us for Help

If you are concerned about protecting your assets, we can help you. Click here to email us or call us at 309-807-2885 for your FREE 15-minute consultation regarding umbrella policy information to help protect your assets.