Asset protection - what do you do?

[Buckeye]

Will any of the "cloaking" matter once someone decides to sue or is it meant to make yourself less of an initial target for a suit which is about an issue for which you are not at fault?

I'm thinking if I have an "at fault" accident and someone decides to sue me, the first thing the opposing lawyer does is start digging into my policy limits and assets. In Florida, it seems the flow is sue first, ask questions later.

 

[REWahoo]

I'm thinking if I have an "at fault" accident and someone decides to sue me, the first thing the opposing lawyer does is start digging into my policy limits and assets. In Florida, it seems the flow is sue first, ask questions later.

Is policy limit information available to someone suing you in FL? I don't think that's the case here in TX.

 

[MichaelB]

#1 umbrella policy
#2 lawyer son

I'm close. Umbrella policy plus lawyer sibling, in-laws, nieces and nephews whom I always remember with a small but meaningful gift on their birthdays, marriage anniversaries, and Christmas.

Close family friends of my folks, one daughter was an attorney. The dad bought a small house for her to live in while she studied, he let her stay in it after graduating. Always in his name, but she offered to handle the payments, taxes and such, so he just sent her the money. That was, until the foreclosure notice arrived. Seems she decided to keep the mortgage payments.

Many of the greatest financial risks we face are from family members, and an attorney in the family doesn't make one safer.

 

[jimnjana]

I just got my umbrella policy renewal from USLI/USAA with a 20% increase tacked on. Not a happy camper. I emailed them to see if they have another provider. I'm sure the problem is FL and not USLI but it was worth an email. Soooo much fraud in this state but there is no incentive to reduce it because there is no control on premiums.

I loved it when CA passed an insurance price control law in the late '80's, early '90's. It was the fraudsters worst nightmare because the insurance companies could no longer tack on huge increases to cover the increased fraud and there was huge motivation to clean things up.

I didn't notice an increase in the umbrella policy (USLI/USAA in FL) renewal this year. Will have to go look now. USAA is not on my "must recommend" list anymore...ever since they would not transfer my homeowners policy to a new purchase in FL. It might be worthwhile to have our homeowners insurance co provide us a quote on everything else.

 

[CoolChange]

...Glad I was able to plant a seed of doubt about the joys of investment real estate. It's not for the faint of heart.

That seed was planted long ago; you just watered and nurtured it a bit, which I definitely appreciate.

For me, owning investment real estate is similar to owning individual stocks, having a motorcycle, lots of good whisky, as well as a few other things I won't mention here: Seems like a good idea at first; almost guaranteed to end badly for me eventually.

 

[SumDay]

you just watered and nurtured it a bit, which I definitely appreciate.

And thank you for starting this discussion about umbrella policies. I'm on the phone with my agent now.

 

[Corporateburnout]

I contacted my insurance company to get umbrella insurance but to my surprise Metlife does not offer it in MA. I get an employer discount with Metlife for autos and home. So far companies I contacted for an umberlla policy requires you to have your autos and home insured with them.

I guess I'll have to shop around for a new insurance policies.

 

[brewer12345]

I contacted my insurance company to get umbrella insurance but to my surprise Metlife does not offer it in MA. I get an employer discount with Metlife for autos and home. So far companies I contacted for an umberlla policy requires you to have your autos and home insured with them.

I guess I'll have to shop around for a new insurance policies.

Check Quincy Mutual. IIRC, when I was in NJ they were willing to write my umbrella without writing home/auto.

 

[fritz]

Umbrella policies are a good option, but as mentioned - you may be sued for more than your coverage and could be financially ruined. It might make you a better target for a lawyer - it's surprising how quickly and how much they can find out about you to determine if you are worth suing. Also mentioned is that some states protect some of your assets in various ways, but not all states. IIRC, your retirement assets are pretty much protected (OJ Simpson), but your taxable assets and personal property are fair game. Most people also title their property jointly (cars, homes, investments), so a car accident opens up everything of value you jointly own to being forfeited in a lawsuit. Remember, the guy's lawyer who is suing you works for a piece of the action, and the lawyer representing "you" works by the hour. The guy's lawyer suing you has to make a good determination if he can afford the upfront cost of going after you.

This topic has come up here in other threads and I have PM'd info regarding asset protection. I am not/was not in the legal field, but have been interested in this topic for some time. There are ways to protect assets that require legal assistance - home(s), income property, investments, etc. Considerations are Personal Residence Trusts (PRT) for your home(s), Limited Liability Companies (LLCs) for dangerous assets (investment properties), and Savings LLCs for unprotected taxable assets. This has side benefits of also protecting you in other ways (ie. medical bankruptcy, and Medicaid eligibility, although there is a 5 year look back with Medicaid).

I found this Lawyer on the internet [www.rjmintz.com] a long time ago - have never used him, but have passed around his site info for reference in these matters. He offers some interesting reading on these matters. Hope this helps.

 

[Buckeye]

Is policy limit information available to someone suing you in FL? I don't think that's the case here in TX.

To be honest, I'm not sure. I was making an assumption that may not be correct.

 

[Katsmeow]

Is policy limit information available to someone suing you in FL? I don't think that's the case here in TX.

In general, except as otherwise provided by law, policy information, including limits, is available in discovery in Texas once a suit is filed. This can be obtained with regard to any insurance that may be liable to satisfy all or part of a judgment.

 

[Buckeye]

I didn't notice an increase in the umbrella policy (USLI/USAA in FL) renewal this year. Will have to go look now. USAA is not on my "must recommend" list anymore...ever since they would not transfer my homeowners policy to a new purchase in FL. It might be worthwhile to have our homeowners insurance co provide us a quote on everything else.

My renewal date is sometime in March. We are renters, not homeowners, so we only have a renter's policy. I could call the agency that brokers my renter's policy (Universal since USAA won't write any dwelling insurance in FL) but I may run into the same problem someone else has with not having the auto and liability with the same company.

 

[pb4uski]

Umbrella policies are a good option, but as mentioned - you may be sued for more than your coverage and could be financially ruined. It might make you a better target for a lawyer - it's surprising how quickly and how much they can find out about you to determine if you are worth suing. .... Remember, the guy's lawyer who is suing you works for a piece of the action, and the lawyer representing "you" works by the hour. The guy's lawyer suing you has to make a good determination if he can afford the upfront cost of going after you.....

Au contraire! Since I have both liability and umbrella with the same carrier they have millions of reasons to provide me with a vigorous defense should I be sued.