Erin R. Parks’ extensive experience in estate planning and real estate matters compliments individuals and corporate owners who benefit from advice on the most effective way to segregate assets.
Business owners and directors are common targets of claims by customers, suppliers, employees, lenders and business competitors, and often these claims extend to government agencies such as the IRS, California’s Employment Development Department or Division of Worker’s Compensation. These business owners need to insulate their personal assets from liability-producing businesses, even if the business is a corporation.
Any professional could exceed their professional liability limits under their insurance policy, or experience full liability if their carrier goes out of business. Likewise, anyone who owns rental real estate is a magnet for lawsuits and a high degree of frivolous claims. Exposure to this owner can be great given the possibility of serious injury to tenants, their guests and workers along with ever-increasing liability for toxic problem lawsuits involving mold or other hazards. Insurance is a must but catastrophes can exceed limits and toxic liability is often excluded from coverage. These owners need asset protection to limit their liability to the value of the single property.
Even those not falling within the above risk groups should seriously consider some level of asset protection. Any driver could have auto accident which might involve damages exceeding their insurance coverage, and be in jeopardy of losing their personal assets.
Anyone with assets in excess of the current federal estate tax exemption needs asset protection to reduce the value of their assets for estate taxation purposes. This is achieved through the use of irrevocable trusts, family limited partnerships and limited liability companies.