Why You Need An Asset Protection Plan

3:19 pm Uncategorized

Over the last several decades expanding theories of liability and the great proliferation of litigation have given increased emphasis to Asset Protection Planning.  Potential liability is now a major concern for doctors, lawyers, other professionals, real estate investors, business owners and persons of high net worth in general.  What this means is that if you have assets and you don’t plan and set up a structure to protect them, then all of the hard work and effort you put into creating the assets may be wasted.

We live in a victim oriented society.  There is a strong societal tendency to blame misfortune and general ills on some specific person or entity.  Accidents happen, things get forgotten, mistakes are made and sometimes things just go wrong.  In the past, society recognized these troubling matters as part of life, but over the last few decades there has developed a strong tendency on the part of some to try to assess any kind of misfortune and place a blame on someone or something rather than to just accept the problem as part of living.

Accompanying this finger pointing is the concept that there should be a monetary reward as compensation for the misfortune.  This victim oriented philosophy, when combined with certain other factors and the “have” and “have-nots” distinction financially, has greatly contributed to the somewhat amazing proliferation of plaintiff driven lawsuits.

Another substantial reason for expanding liability claims is the financial remuneration available to plaintiff lawyers who pursue their victims’ claims.  Most plaintiff lawyers take cases on a contingency basis so the victims don’t have to come up with any financial reserves in order to initiate and sustain the claims.  The lawyers who take on these cases are willing to finance them because of the alleged “pot of gold” waiting in the form of expensive jury verdicts at the end of the case.

Moreover, the courts, under pressure from aggressive plaintiff lawyers, often give in to the victim oriented mentality discussed above, and have greatly expanded theories of liability against business owners, physicians, other professionals and others of high net worth.  This, of course, is part of the deep pocket theory.  The rationale being, if someone has some wealth that it really doesn’t hurt to extract a portion of such wealth to compensate an alleged victim and to correct the so-called impropriety or act of negligence.

In view of the onslaught of litigation and risks involved in general and real estate investments, it is absolutely essential to properly plan and prepare an Asset Protection structure in advance.  Not only should Asset Protection be devised and strategized, it also needs to be properly implemented with the help of a skilled and experienced asset protection attorney.

Contact us today for individualized planning strategies to meet your unique needs.

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