Ever heard of a homeless person being sued? Of course not. People sue those who have money. If you have sizable assets or are about to come into a windfall, there are a number of strategies you should consider using to protect yourself from lawsuits.
According to an article in the Chicago Tribune, these include:
- Increase your liability insurance. It should be at least equal to your wealth or to what you are going to inherit.
- Keep assets separate. Depending on the state you live in, money in a joint account could be split equally in the case of divorce.
- Protect yourself from renters. Set up an LLC or corporation to shield yourself from renters’ claims.
- Review joint accounts. If you have any, keep the balances as low as possible.
- Formalize any informal partnerships. Better yet, avoid partnerships and set up corporations.
- Create business entities to shield assets. Sole proprietorships are vulnerable.
If you have any questions about asset protection strategies, feel free to call us at (626) 696-3145 for a consultation.
