Common Ways to Attain 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 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.
One of the most common ways to achieve real estate asset protection is through insurance. The type of asset being protected will determine the insurance coverage you need. As you increase your wealth, it is necessary to increase your insurance coverage as well. Getting an umbrella policy is also advisable so as to get comprehensive coverage. Be sure to get professional guidance regarding the policy you will 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. Any issues or challenges your business might face will not affect your personal assets. The business is a separate entity and as such debtors have no right to 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.
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 be found 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 is also a good way to discourage people from filing lawsuits. This is because they will need money to discover your identity before proceeding with the suit. The amount of compensation they are looking for might not be worth the lawsuit.
Another great way to protect your assets is by titling your home. Being equal tenants with your spouse means you both have indivisible interest in the property. 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.
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