No matter which industry you work in, you are open to a lawsuit. But despite being exposed to liability, certain professionals are more susceptible to lawsuits than others. Those who work as doctors & nurses, attorneys, and financial advisors are just a few of the individuals who are at greater risk. So although it is important for everyone to have an estate plan, it is of even greater importance that high-risk professionals have one – not only for their own protection but for that of their families too.
Although malpractice suits are common for doctors and lawyers, it is not their professional actions that put them at the most risk. Rather, what many people may not know is that these individuals carry more risk due to factors including poor investments, automobile accidents, poor tax and business planning, and divorce than they even are with their practice.
Forming the Right Business Entity
Selecting the appropriate business entity is also very important for protecting yourself and your family. This helps you to maximize short- and long-term success as well as to protect your personal assets.
Although a lot of professionals operate as sole proprietors or general partners when working with a co-owner, many at-risk professionals choose to instead incorporate their business. There are many reasons why they choose to do so including the fact that it helps to protect them from liability. Other entities that help to protect people from liability include corporations, limited liability companies (LLC) and limited liability partnerships (LLP).
Other Protective Tools for High-Risk Professionals
Aside from forming the appropriate business entity, there are other legal tools that high-risk professionals often utilize to protect themselves. These include tools such as a Trust. Trusts are commonly used along with another tool in order to protect one’s assets during his or her life as well as after he or she has passed.
These other asset-protective tools include a Domestic Asset Protection Trust or a Third Party Settled Spendthrift Trust. By legally moving your assets to one of these types of trusts your assets will be protected if someone brings a claim against you or your business. Foreign tools that also help to protect your assets include:
- Foreign LLCs
- Foreign Insurance
- Foreign Annuities
- Foreign Integrated Estate Planning Trusts
- Civil Law Foundations
- Hybrid Companies
Just remember that any tool that is used for asset protection must be chosen prior to the occurrence of an issue.
The Attorneys at Surovell Isaacs & Levy PLC Help Those in Virginia Who Have Estate Planning Needs
After putting in so much time and effort to earn all that you have, you deserve to keep it. At Surovell Isaacs & Levy PLC, our attorneys can help you to protect your assets. We can help you with your estate planning needs. To learn more or to schedule a consultation, contact us today!
Posted in: Estate planning/Trusts