Common Ways to Attain Real Estate Asset Protection
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 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. Click for more information regarding real estate asset protection.
Needless to say, insurance is one way to legally protect your real estate assets. The type of asset you are protecting determines the insurance cover you will need. 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. This protects your personal assets in all circumstances such as lawsuits. Whatever issues your business might be having will not affect your personal property in any way. 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 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 be found on any records. Lawyers will not be able to trace your properties in the event of a lawsuit. 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 cost of pursuing the lawsuit might be more than the compensation they are seeking.
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 interest serves to protect your home from creditors if either of you faces a lawsuit. It is important to note that indivisible interest is only valid for your personal residence. For your commercial assets, you’ll need an investment property. Common tenancy is an amazing option for real estate asset protection.
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