Anyone who works in certain industries knows they must protect their career and accumulated earned income in some manner. However, many of these affected individuals do not realize that merely purchasing a professional indemnity insurance policy is not an effective plan. The type of coverage or scope of protection can vary with different personal situations, but the concept is the same across the various industries. In addition to insurance protection, it is also a sound business decision to establish a revocable living trust as well that can be used to shelter idle personal wealth. It is commonly understood that contemporary society is easily the most litigious business environment known throughout history. This condition requires all high-income earners to always evaluate their need for financial protection instruments that shield them when legal disputes arise. One thing is for certain in contemporary society. Legal conflicts happen on a regular basis, meaning that being prepared beforehand is always the best step for anyone who may be financially liable beyond maximum insurance coverage.
One industry whose members are the target of a considerable number of legal actions is the healthcare industry, physicians and surgeons in particular. While it is a fact that medical professionals are still human and do make mistakes, it is also true that many claims brought forward are borderline at best. All professionals in the healthcare industry understand their need for errors and omission insurance protection, but this does not protect personal assets. The best option for asset protection is usually establishing a revocable living trust that transfers excess personal wealth under ownership of a separate financial entity. The only damages available in a legal action will then be limited to insurance policy protection. This is a legal step that should also be part of an overall estate management plan that could include other financial instruments as well.
Business Owners and Employers
Business owners and employers commonly amass significant wealth when their businesses are highly successful. The problem for these individuals is often protecting assets from business associates, employees, and government agencies that all could present a legal challenge over any particular issue. Once again, most employers are protected from most lawsuits stemming from workplace injuries, but that is not always the case when a plaintiff attorney can prove negligence in a court hearing. This possibility could also result in punitive damage awards in the wrong situation. Having your personal assets protected through a comprehensive estate plan can make personal assets unavailable for legal attachment when major financial liabilities could occur.
Entertainers and Athletes
There are few individuals in the contemporary economy with wealth that rivals entertainers and athletes. Even the minimum salaries required for an average professional athlete can create a need for a comprehensive estate plan. Most entertainers and athletes know very little about how to structure their assets in a manner that ensures unscrupulous actors cannot latch onto personal funds. The list of both who have lost fortunes due to bad advice and suggestion is extensive. Basic level risk management can work for some, but the truth is that solid protection is achieved with an overall plan that is structured against all outside entities with legal claims or business venture ideas.
The key condition for sound asset protection is having your protection plan in place and validated before any legal problems happen. It is practically impossible to protect any asset if a lawsuit has already begun when the court has the authority to freeze those accounts. Assets protected under instruments such as living trusts can set those funds outside of potential court orders resulting from a lawsuit of any type. It is vital to always select an experienced estate planner like the legal professionals at Morgan Legal Group PC who understand the potential problems and how to insulate their clients’ assets against legal claims.