As you may have learned from experience, life can be unpredictable sometimes. You may try to prepare for life’s unexpectedness as much as you can through your estate plan. But something that may come entirely out of left field is if you get a civil lawsuit filed against you. Not only may you worry about what this does to your reputation, you may be concerned about the financial toll this may have on you. Without the need for further introduction, please continue reading to learn how your established estate plan can potentially protect your assets from being taken in a lawsuit and how an experienced Broward County estate lawyer at The Probate Lawyers can work to ensure such protective measures are taken.
How are my assets potentially threatened in a civil lawsuit?
Say, for instance, that you are a practicing medical professional in the state of Florida. Then, say that a former patient of yours, unfortunately, files a medical malpractice claim against you. Here, they may claim that they incurred serious injuries and subsequently suffered economic and non-economic damages after being put under your direct care. In turn, they may want to be financially compensated by you.
If you ultimately lose, the plaintiff may obtain a court judgment to collect the awarded compensatory damages from your assets. This may mean that they attempt to seize your bank accounts. Or, take your real estate, vehicles, and other personal property; garnish your wages; or claim future income like commissions or inheritances to satisfy the court judgment against you. This is not to mention the assets you may lose in the process of having to cover your lawyer fees and other court fees.
How can my estate plan protect my assets from being taken in a lawsuit?
Losing your assets to a frivolous civil lawsuit is not the legacy you want to leave for your loved beneficiaries. For this reason, and many other unmentioned reasons, you must make valiant efforts toward making asset protection plans within your overall estate plan. Examples of certain asset protection strategies you may adopt are as follows:
- You may place a considerable amount of your assets into an irrevocable trust.
- You may transfer a considerable amount of your assets to your spouse’s name.
- You may transfer a considerable amount of your assets to a limited liability company.
- You may place a considerable amount of money into your employer-sponsored retirement plan.
- You may buy into an umbrella insurance policy that protects you from potential personal injury claims.
- You may diligently separate your personal assets from your business assets should a lawsuit be against your business.
There is a lot to consider before establishing your estate plan. To help you make the right considerations, please consult with a skilled Broward County estate lawyer. Our team at The Probate Lawyers will guide you toward the best decision.
