Reliable Ways to Ensure Real Estate Asset Protection
We spend most of our lives working hard to build our wealth. We need to protect that wealth long term, and that is where real estate asset protection comes in. Generally, real estate asset protection is a legal way to protect your assets from third party claims like creditors and individuals. This is one of the best decisions you can make as you build your business. With the right real estate asset protection in place, you are shielded from some of the most expensive risks such as creditor claims. Read more now to found out more about ways to attain real estate asset protection.
One of the most common ways to achieve real estate asset protection is through insurance. The insurance cover you need is determined by the type of asset you are protecting. An increase in wealth means you should increase your insurance coverage as well. 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.
Getting limited liability for your rental property is also very fundamental to real estate asset protection. By doing this, you ensure your personal assets do not suffer in the event of a lawsuit. Whatever issues your business might be having will not affect your personal property in any way. The business is a separate entity and as such debtors have no right to claim your personal property. Real estate asset protection can also be achieved by having your commercial assets in different LLCs. This will ensure that your assets will not suffer risks jointly.
Real estate asset protection can also be achieved 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. 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 cost of pursuing the lawsuit might be more than the compensation they are seeking.
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 way, if either of you gets a lawsuit, creditors cannot come for your house because of the interest. You should keep in mind, however, that this indivisible interest can only be applied to your personal residence. For your commercial assets, you’ll need an investment property. Common tenancy is an amazing option for real estate asset protection.
Reference: why not try these out