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In the U.S., lawsuits are a real fear for many professionals in different industries. A fear of lawsuits doesn’t necessarily mean that you are doing anything wrong in your profession. Litigation may come in the form of an unhappy client who believes your financial advice did more harm than good. Whatever the reason for the lawsuit, you should consider lawsuits when you are creating your estate plan.
If you work in a high-risk industry, you may want an asset protection trust.
What Are High-Risk Industries?
Some industries are more at risk for lawsuits than others. The most sued professionals include lawyers, doctors, real estate agents and accountants. In these professions, your goal is to help your clients. If they make a mistake, then it could cost their clients their money, health or property. If a person suffers a financial loss, then it is more likely he or she will choose to file a lawsuit
How Do Asset Protection Trusts Help?
When you have an asset protection trust, creditors cannot access your assets. For instance, if you have family heirlooms or wealth that you want to pass on to your children or other beneficiaries, a trust can ensure that those assets are safe and not under your control. When they are not under your control, then creditors cannot access them. Technically, you are not the owner of the asset.
Likewise, this can be a deterrent for those who may sue you. When a person files a lawsuit, he or she has to think about your wealth and assets. After all, it may be worthless to file a lawsuit against someone who doesn’t have the assets available to pay. If someone looks into your assets and discovers that you do not have a lot of wealth, he or she may choose not to file a lawsuit. Even if a lawsuit occurs, you don’t have to worry about your assets.
If you work in a high-risk profession, then you need to keep lawsuits in mind. Doctors, for instance, are most likely to experience a lawsuit during their career. While insurance can help, you don’t want to rely solely on insurance. An asset protection trust can ensure that your assets are safe from any creditors or plaintiffs in a lawsuit case. To find out more about how an asset protection trust can help you, contact an estate planning lawyer, like the Yee Law Group for a consultation.