Methods to Legally Protect Your Real Estate Assets
We spend a big part of our lives improving on our wealth. To protect that wealth long term, real estate asset protection is very important. In lose terms, real estate protection involves legally protecting your assets from all sorts of claims such as creditors. This is a very important strategy for any business. Expensive risks such as creditor claims can be avoided through real estate asset protection. Click for more information regarding real estate asset protection.
Insurance is one of the most common ways to attain real estate asset protection. The type of asset being protected will determine the insurance coverage you need. Your insurance coverage needs to increase with the increase in wealth. You can also choose to get an umbrella policy for comprehensive coverage. Contact an insurance professional today and inquire about features of the policy you want to choose for your property.
Real estate asset protection can also be attained by getting limited liability for your rental property. 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. It is also wise to have your commercial assets in different LLCs. By doing this, you ensure that one property facing risk won’t put the rest at risk.
Anonymous land trust is another important way to get real estate asset protection. 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. This method also serves to discourage people from pursuing lawsuits against you. 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. You will have to get an investment property for your commercial assets. Common tenancy is an amazing option for real estate asset protection.