Common Ways to Attain Real Estate Asset Protection
Most of our life is spent on amassing wealth for ourselves. We need to protect that wealth long term, and that is where real estate asset protection comes in. 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. 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.
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. Get in touch with an insurance professional, and they’ll take you through all the insurance policies available for your property’s protection.
You can also protect your real estate assets by getting limited liability. 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. 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. 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. In the event of a lawsuit, the lawyers will not be able to trace your trust to your real estate properties. This method also serves to discourage people from pursuing lawsuits against you. 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.
The titling of your home is also a great real estate asset protection strategy. Indivisible interest in the property can be attained by having 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. This, however, is only applicable 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.