Methods to Legally Protect Your Real Estate Assets
We spend most of our lives working hard to build 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 very necessary for all businesses. Expensive risks such as creditor claims can be avoided through real estate asset protection. Read more now to found out more about ways to attain 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. Getting an umbrella policy is also advisable so as to get comprehensive coverage. Get in touch with an insurance professional, and they’ll take you through all the insurance policies available for your property’s protection.
Real estate asset protection can also be attained by getting limited liability for your rental property. This means your personal assets are safe even 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. You should also get your commercial assets in different LLCs. This way, if any of the assets face a risk, the safety of the rest of your property is assured.
You can also protect your assets through anonymous land trust. By getting an anonymous land trust, you can avoid legal implications on your property. With a trustee, your name will not appear on any records. Lawyers will not be able to trace your properties in the event of a lawsuit. People are also discouraged from filing lawsuits against you with this method. This is because they will need money to discover your identity before proceeding with the suit. The compensation they are seeking might not be worth the investment.
Another great way to protect your assets is by titling your home. You get indivisible interest when you have your spouse as an equal tenant. This interest serves to protect your home from creditors if either of you faces a lawsuit. This, however, is only applicable to your personal residence. For your commercial assets, you’ll need an investment property. You can achieve real estate asset protection by using this common tenancy method.