In today’s unpredictable world, protecting your hard-earned assets is essential. Failure to protect your assets adequately can put you in a vulnerable position subject to potential lawsuits that may jeopardize your financial stability. As an individual or a business owner, it is crucial to learn about the various ways you can protect your assets and the consequences of failing to do so. Below, we will discuss five potential lawsuits which can jeopardize your assets if not protected. Continue reading for more information on the various ways the Law Office of Inna Fershsteyn can help you protect your assets against complicated and stressful lawsuits.
Lawsuits That Can Jeopardize Your Unprotected Assets
- Personal liability- One of the primary reasons to protect your assets is to ensure your safety against personal liability lawsuits. For example, in the event of a car accident, if you are found liable for damages which exceed your insurance coverage, your unprotected assets may be seized to settle the judgment. This can also occur in a lawsuit for an event such as a dog bite or other animal injuries. If your pet has harmed another individual and they chose to sue for damages, they may target your unprotected personal assets.
- Business Lawsuits- As a business owner, you are even more susceptible to lawsuits, putting your assets at a greater risk. Whether faced with employee disputes such as wrongful termination, discrimination and harassment or negligence, these cases serve as opportunities for the plaintiff to target your unprotected assets. Forming legal entities including an LLC, or a Limited Liability Company, is a strategic move that provides a critical layer of protection for business owners. By creating a separate legal entity, personal assets are shielded from potential liabilities arising from lawsuits, such as employee disputes or negligence claims. This separation ensures that, in the face of legal challenges, the business owner's personal wealth remains safeguarded, allowing them to navigate legal complexities without risking personal financial ruin.
- Professional liability- In a professional liability lawsuit, a professional is accused of failing to meet the expected standard of care in their field, more commonly known as malpractice. For example, an accountant can be sued for missing a filing deadline or a medical professional can be sued for negligence if they unintentionally harm a patient. Professional liability, although cannot be prevented, there are measures you can take to protect your personal assets to ensure they won’t be targeted in the event of a lawsuit. It is recommended to purchase professional liability insurance policies or malpractice insurance, which ensures coverage in the case of legal claims. These policies offer financial coverage in the event of legal claims, providing a safety net for professionals accused of failing to meet the expected standards in their respective fields, such as missing deadlines or unintentional harm to clients or patients.
- Divorce- A divorce can have a significant impact on your assets. Primarily, if your assets are not titled, you do not have separate bank accounts, or did not consider a prenuptial agreement, your spouse may be entitled to a portion of your personal assets in the event of a divorce. It is crucial that you establish your individual assets before marriage to avoid conflict during divorce. Establishing a prenuptial agreement is crucial to defining individual assets before marriage, helping to prevent conflicts and uncertainties in the event of a divorce. This legal document outlines the rights and responsibilities of each spouse regarding property, finances, and other assets, providing clarity and potentially streamlining the divorce process.
- Estate planning- Neglecting to protect your assets when planning an estate can result in serious consequences. Inadequate asset protection in your estate plan can lead to disputes among beneficiaries and potentially lead to lawsuits. A well-crafted estate plan, with meticulous attention to asset protection strategies, is essential to address potential conflicts and ensure a smoother distribution process for the benefit of all involved parties Consulting with a knowledgeable and experienced attorney, such as Attorney Inna Fershsteyn, is crucial, as she can assist you with your estate planning needs and ensure your assets are protected.
Steps to Take For Better Asset Protection
One of the most common ways to protect your assets is to obtain insurance. For example, auto insurance, homeowners insurance and health insurance can provide you with coverage in the event of car accidents, illness, hospital visits or accidental house fires or floods. Regardless of the total value your assets add up to, it may be beneficial to purchase umbrella insurance which provides you with extra protection of your assets that other insurance policies do not cover.
Another way to ensure the protection of your assets and protect against lawsuits as a business owner is to form an LLC, or a limited liability company. This way, you are protected against your company's debts and liabilities. Crafting an estate plan and establishing trusts are crucial for safeguarding your assets posthumously. Trusts, like revocable living trusts, streamline asset distribution, bypassing the complexities of probate. Furthermore, trusts provide asset protection by shielding them from potential creditors and legal claims. By minimizing estate taxes, a well-structured estate plan with trusts ensures that a larger portion of your wealth is passed on to your beneficiaries, securing your legacy for future generations.
How Can an Attorney Help You?
Consulting with an asset protection attorney will give you access to all of the protection strategies unique to your case. An attorney will explain the advantages of each type of strategy, while also evaluating the potential risks in the event of a lawsuit. Most importantly, a trustworthy asset protection attorney constantly stays up to date on evolving regulations such as trust laws and your state’s estate planning tax laws. Attorney Inna Fershteyn is a knowledgeable attorney with 20+ years of experience in the field and can assist you with protecting your assets to avoid lawsuits and conflicts in the future. If faced with a lawsuit, unprotected assets are an easy target that can be immediately seized by the court. Therefore, it is crucial to ensure that your personal assets are protected. For all of your asset protection needs, please contact the Law Office of Inna Fershsteyn at (718) 333-2394.