How Lawsuits Impact the Need for Asset Protection
If you are working on your estate plan, have you thought about an asset protection trust? At first, you may wonder why you need an asset protection trust instead of a typical or standard trust. The answer may be in your likelihood of facing a lawsuit. Even if you do everything for your business by the book, it does not mean that you will never have a lawsuit. If you do have this as a risk, you may want to think about asset protection trusts.
Of course, depending on your industry, you may not realize the risk of lawsuits it the consequences that you may face. Here is what you need to know.
There are a lot of reasons that you may face a lawsuit. In fact, there are a few different industries where lawsuits are more likely to occur. For instance, if you are a doctor, lawyer, financial planner or any other occupation that works closely with clients and handles large amounts of money, you are always at risk of a lawsuit. If a person thinks that you were unfair in any way, he or she may decide to file a lawsuit against you. Most industries are subject to lawsuits.
Not everyone has the assets to pay for a lawsuit. Moreover, do you want to lose your wealth and assets because of a lawsuit? If you have the potential to lose assets, then of course you are going to want to preserve them as much as possible. Say that you are facing a lawsuit and you lose. In addition, what happens if your insurance does not cover the lawsuit or the award that the other person was given? You have to pay from your own assets. if you do not have your assets safe, then anything that you own could be fair game. This could not only harm you, but it could mean that your legacy can’t be passed on for generations. Lawsuits are not only expensive when you lose either. There are high legal costs that you may have to pay.
When it comes to estate planning, there are different trusts that you can choose between. If you are someone who is at risk of lawsuits, then you may want to consider an asset protection trust. These types of trusts can offer you protection. To find out more, contact an estate planning lawyer in Mesa, AZ today and set up a consultation!
Thanks to Citadel Law Firm for their insight into estate planning and the need for asset protection.