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Asset protection - what do you do?
02-01-2013, 03:28 PM
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#1
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Full time employment: Posting here.
Join Date: Mar 2011
Posts: 534
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Asset protection - what do you do?
I'm curious, besides basics like an umbrella policy, has anyone here taken specific steps to protect their assets from creditors?
I'm specifically thinking about protection from future lawsuits - I have no particular reason to be concerned, it strikes me as a very small risk but one with a potentially large downside.
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02-01-2013, 03:34 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
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I gave away our pit bulls, sold the trampoline and filled in the pool. That, plus an umbrella policy, and I'm good.
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Numbers is hard
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02-01-2013, 03:49 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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One of the first things people need to do is look up the laws in their own state. If you live in a state like Florida, Texas or Oklahoma, for example, your primary residence, retirement accounts and insurance contracts are a *lot* better protected from creditors and lawsuits than they are in many other states.
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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02-01-2013, 05:26 PM
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#4
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,199
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I believe in giving everyone ample warning.
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02-01-2013, 05:31 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Nov 2012
Location: Madeira Beach Fl
Posts: 1,403
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In short, no.
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_______________________________________________
"A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do" --Bob Dylan.
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02-01-2013, 05:43 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2009
Posts: 5,307
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As ziggy pointed out, you need to look at what your state protects. Where I live there is a lot of protection just by living here.
I do agree about umbrella protection. Another thing is to check and make sure you have adequate scope of liability coverage (underlying policies not just the umbrella) for your risks.
Another point that REWahoo makes but is really good is to try to avoid the situations most likely to create liability. Obviously what those are can vary from person to person. For example, someone who owned rental property might choose to own that property in a form of entity where he or she didn't have personal liability. It is important to consult with an attorney in your state as what that might be or as to asset protection in general.
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02-01-2013, 07:14 PM
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#7
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Recycles dryer sheets
Join Date: Dec 2011
Posts: 388
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Quote:
Originally Posted by jon-nyc
I'm curious, besides basics like an umbrella policy, has anyone here taken specific steps to protect their assets from creditors?
I'm specifically thinking about protection from future lawsuits - I have no particular reason to be concerned, it strikes me as a very small risk but one with a potentially large downside.
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I had an umbrella policy for many years when I lived in NYC. (From Chubb, by the way, recommended.) But when I sold my apartment and quit driving I discontinued it, since those represented my biggest risk of a lawsuit.
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02-01-2013, 07:16 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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I think an umbrella should do it. You can get multi-million limits on umbrellas if you like.
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"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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02-01-2013, 07:57 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Aug 2012
Posts: 1,862
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I have no creditors, so I'm not worried about protecting assets from them. But lawsuits? That's a different story...
So you should have umbrella coverage that equals your net worth?
Uh oh, guess I'd better call my agent Monday....
What's to keep someone from coming after you for face value of your umbrella policy + your assets?
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02-01-2013, 08:05 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Feb 2011
Posts: 1,796
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When I finally ER, this will be my umbrella policy-
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02-01-2013, 08:06 PM
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#11
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Recycles dryer sheets
Join Date: Mar 2008
Posts: 410
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Most retirees are "judgment proof'" as far as income goes. It all comes down to how many "toys" you have beyond a car and primary residence.
There are professional debtors, among those of retirement age, who have asset protection down to a science. Mainly because of the way the law exempts retirement accounts, pensions, and SS. If one has several homes, expensive vehicles, and otherwise, it obviously becomes more difficult to avoid judgments.
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ACC USN-(Ret)
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02-01-2013, 08:07 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Jun 2010
Posts: 2,301
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Quote:
Originally Posted by SumDay
What's to keep someone from coming after you for face value of your umbrella policy + your assets?
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Well they would have to have some sort of justification and I imagine their losses would have to be proportional to whatever damages they are seeking. Most umbrella policies are in the millions so the insurance companies have incentive to defend you.
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02-01-2013, 08:22 PM
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#13
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Moderator Emeritus
Join Date: May 2007
Posts: 12,894
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Quote:
Originally Posted by SumDay
What's to keep someone from coming after you for face value of your umbrella policy + your assets?
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And how would that someone know the face value of your umbrella policy - or even if your have one. Your insurance company won't disclose it, so just make sure you do not disclose it yourself.
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02-01-2013, 08:27 PM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
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Quote:
Originally Posted by FIREd
And how would that someone know the face value of your umbrella policy - or even if your have one. Your insurance company won't disclose it, so just make sure you do not disclose it yourself.
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+1
__________________
Numbers is hard
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02-01-2013, 08:31 PM
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#15
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Full time employment: Posting here.
Join Date: Mar 2011
Posts: 534
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Quote:
Originally Posted by SumDay
What's to keep someone from coming after you for face value of your umbrella policy + your assets?
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Nothing. Hence my interest in investigating the topic.
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02-01-2013, 08:34 PM
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#16
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Full time employment: Posting here.
Join Date: Mar 2011
Posts: 534
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Also, to clarify the question, it was what do *you* do for asset protection?
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02-01-2013, 08:37 PM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
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Quote:
Originally Posted by jon-nyc
Also, to clarify the question, it was what do *you* do for asset protection?
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Asked and answered.
__________________
Numbers is hard
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02-01-2013, 08:45 PM
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#18
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Moderator Emeritus
Join Date: May 2007
Posts: 12,894
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Is it wise for people to disclose the details of their asset protection plan to strangers on the internet?
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02-01-2013, 09:16 PM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
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Quote:
Originally Posted by jon-nyc
I'm curious, besides basics like an umbrella policy, has anyone here taken specific steps to protect their assets from creditors?
I'm specifically thinking about protection from future lawsuits - I have no particular reason to be concerned, it strikes me as a very small risk but one with a potentially large downside.
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No. I have very good underlying coverage and a umbrella from the same insurer and between the two the insurer has an incentive to mount a vigorous defense if I should ever be sued.
That and I try my best not to do anything stupid or short sighted that could spawn a suit. That's it. Never been sued, don't expect to be but am nonetheless prepared.
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If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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02-02-2013, 04:53 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
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Nothing. I just avoid litigation at all costs professionally and personally. Professionally by doing the best I can for all my patients. Even for those patients i see at free clinics while being covered by the Good Samaritan Act. And personally by keeping in good terms with everyone, keeping a low profile, staying out of trouble in general, and by remaining single.
Quote:
Originally Posted by jon-nyc
Also, to clarify the question, it was what do *you* do for asset protection?
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Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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