We spend most of our lives working hard to build our wealth. We need to protect that wealth long term, and that is where real estate asset protection comes in. Generally, real estate asset protection is a legal way to protect your assets from third party claims like creditors and individuals. This is one of the best decisions you can make as you build your business. Expensive risks such as creditor claims can be avoided through real estate asset protection. Click for more information regarding real estate asset protection.
Needless to say, insurance is one way to legally protect your real estate assets. The type of asset you are protecting determines the insurance cover you will need. As you increase your wealth, it is necessary to increase your insurance coverage as well. For comprehensive coverage, you can decide to get an umbrella policy. Be sure to get professional guidance regarding the policy you will choose for your property.
You can also protect your real estate assets by getting limited liability. By doing this, you ensure your personal assets do not suffer in the event of a lawsuit. Any issues arising in your business cannot be settled by your personal property. Your business becomes its own entity, and thus debtors cannot claim your personal property. Real estate asset protection can also be achieved by having your commercial assets in different LLCs. This will ensure that your assets will not suffer risks jointly.
Real estate asset protection can also be achieved through anonymous land trust. Anonymous land trust is a great way to avoid legal implications on your property. With a trustee, your name will not be found on any records. If a lawsuit is filed against you, the lawyers won’t trace your real estate properties. People are also discouraged from filing lawsuits against you with this method. Even before filing the suit, they will have to spend money on revealing your identity. The compensation they are seeking might not be worth the investment.
Another great way to protect your assets is by titling your home. Indivisible interest in the property can be attained by having your spouse as an equal tenant. This means creditors have no right to your home if either of you faces a lawsuit. It is important to note that indivisible interest is only valid for your personal residence. In order to protect your commercial assets as well, you will have to get an investment property. You can achieve real estate asset protection by using this common tenancy method.