Asset protection: what to do, how to do it
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You work hard for the money, so it’s only logical that you should want to protect it. Although every physician’s worst nightmare is being wiped out as a result of a medical malpractice judgment, that rarely happens (see “10 years in legal hell,” p. 70). Typically, these lawsuits are settled before they ever go to court, and even if a judgment is handed down, the damages are often capped at your policy’s coverage limits. More likely tugs-of-war over your assets involve nonmalpractice litigants (ex-spouses; business and investment partners; others alleging injuries related to a car accident, labor issue, or contractual dispute), the IRS or a bankruptcy court. But regardless of who may one day be chomping at the bit to get his or her hands on your assets, the basic tenets of protection apply, so … DON’T WAIT. If you think only multimillionaires have assets worthy of protection, think again. It’s always prudent to separate your property from creditors and predators–before a possibility becomes a reality. “It’ll be too late if you wait until after you’re sued,” says Edward R. Collins, president of Collins Wealth Management in Parsippany, NJ. “A transfer of property out of your name in response to a lawsuit as a way of sidestepping creditors may be interpreted as a fraudulent transfer.” DO SHIFT RISK TO AN INSURER. If you’re insured to the fullest extent, your assets may go untouched. Aside from ample medical malpractice coverage, you should be insured against events such as death and disability, as well as have sufficient health and long-term-care coverage. A catastrophic injury could wipe you out Source : accessmylibrary.com |