Any time you interact with the public, you are susceptible to a lawsuit. That is why no matter which industry you work in, you are always exposed. However, there are certain industries that are inherently more susceptible to lawsuits than others. This group often contains people with careers in medicine, law, and finance. These individuals are at a much greater risk. So even though estate plans are of great importance to everyone and anyone, they are even more important for professionals in high-risk jobs who want to reduce the risk to which they and their loved ones are exposed.
Most of us would not be surprised to hear that medical and legal malpractice suits are not uncommon among doctors and lawyers respectively. However, what many people may not know is that these individuals are more at risk due to factors such as poor investments, automobile accidents, poor tax and business planning, and divorce than they even are with their practice.
Choosing the Right Business Entity
One of the best ways of protecting yourself and your family is by selecting the right business entity. With that, you are able to maximize short- and long-term success, while also protecting your personal assets.
While many professionals operate as sole proprietors or general partners when working with a co-owner, many at-risk professionals often choose to incorporate their business. They do so for many reasons. One of the main reasons for this is that it helps to protect them from liability. Entities that also help to protect people from liability are corporations, limited liability companies (LLC) and limited liability partnerships (LLP).
Other Protective Legal Tools
In addition to choosing the right business entity, there are other legal tools that high-risk professionals choose to protect themselves. One such legal tool is a Trust. Trusts are generally used along with another tool to protect one’s assets over the course of his or her life as well as after they have passed.
Such asset-protective tools include a Domestic Asset Protection Trust or a Third Party Settled Spendthrift Trust. Should someone bring a claim against you or your business, by legally moving your assets to one of these types of trusts your assets will be protected. Other foreign tools that help to protect your assets include:
- Foreign LLCs
- Foreign Insurance
- Foreign Annuities
- Foreign Integrated Estate Planning Trusts
- Civil Law Foundations
- Hybrid Companies
However, it is important to note that any tool used for asset protection must be selected prior to you encountering an issue.
The Law Offices of Jeffrey A. Herzog, P.A. Help Those in Florida with Estate Planning Needs
After years of working hard to obtain everything that you have, you understandably desire to protect your assets. At the Law Office of Jeffrey A. Herzog, P.A., we understand the importance of protecting what is yours. We can help with your estate planning needs. To learn more or to schedule a free consultation, contact us today!