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Asset protection - what do you do?
Old 02-01-2013, 03:28 PM   #1
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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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Old 02-01-2013, 03:34 PM   #2
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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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Old 02-01-2013, 03:49 PM   #3
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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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Old 02-01-2013, 05:26 PM   #4
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I believe in giving everyone ample warning.
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Old 02-01-2013, 05:31 PM   #5
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In short, no.
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Old 02-01-2013, 05:43 PM   #6
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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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Old 02-01-2013, 07:14 PM   #7
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Originally Posted by jon-nyc View Post
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.
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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Old 02-01-2013, 07:16 PM   #8
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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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Old 02-01-2013, 07:57 PM   #9
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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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Old 02-01-2013, 08:05 PM   #10
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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.
When I finally ER, this will be my umbrella policy-
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Old 02-01-2013, 08:06 PM   #11
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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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Old 02-01-2013, 08:07 PM   #12
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What's to keep someone from coming after you for face value of your umbrella policy + your assets?
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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Old 02-01-2013, 08:22 PM   #13
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What's to keep someone from coming after you for face value of your umbrella policy + your assets?
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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Old 02-01-2013, 08:27 PM   #14
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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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Old 02-01-2013, 08:31 PM   #15
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What's to keep someone from coming after you for face value of your umbrella policy + your assets?
Nothing. Hence my interest in investigating the topic.
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Old 02-01-2013, 08:34 PM   #16
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Also, to clarify the question, it was what do *you* do for asset protection?
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Old 02-01-2013, 08:37 PM   #17
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Also, to clarify the question, it was what do *you* do for asset protection?
Asked and answered.
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Old 02-01-2013, 08:45 PM   #18
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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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Old 02-01-2013, 09:16 PM   #19
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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.
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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Old 02-02-2013, 04:53 AM   #20
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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.

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Also, to clarify the question, it was what do *you* do for asset protection?
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