Michael Figueroa - Contributor

Comments

Why Asset Protection?

Asset protection has become a topic of great interest to professionals, executives, business owners, and real estate developers. In today's fluctuating economy, tough credit market, professional malpractice, toxic waste liability and increasing exposure to tort and contract claims have increased the focus on how to lawfully protect one's assets from creditors. However, asset protection planning is not just for high paid professional executives and the super wealthy.

Today's world is an environment filled with lawsuits, taxes, accidents and financial risks that can easily wipe out anyone's assets, it is the sniper in the woods. No matter how safe you feel, you can never be certain that the wealth you have built up over a lifetime won't suddenly be taken from you tomorrow. Whatever your occupation or lifestyle, we all are close to financial disaster and potential liability.

There are a number of reasons for asset protection:

1. There is a litigation explosion in the United States. It is estimated that a new lawsuit is filed every 2 seconds. 
2. Many Americans avoid jury duty because of the time required and the low economic reimbursement for jury service. This often results in a non­ representative jury unfamiliar with sophisticated legal arguments and outrageous decisions and awards based on emotion.
3. Insurance coverage is frequently inadequate. In many cases, the coverage amounts are so low that insurance companies will post the coverage and offer little effective defense. Further if the claim is large the insurance company will deny the claim or the insured did not adequately disclose the risk on the forms.
4. There are many individuals who make it a career to file frivolous lawsuits knowing the tremendous expense of responding to even be most baseless legal action.
5. There is a lot of failure in this country in search of blame. This results in a deep pocket mentality. Many individuals and companies are faced with frivolous lawsuits merely because they have exposed assets 
6. Even if you win a lawsuit, the winner still normally pays their own legal costs and fees. The legal system is often slow, ineffective and expensive. Even small nuisance lawsuits can result in tens of thousands of dollars in legal costs plus hundreds of hours in. personal time.