Last Updated on December 21, 2022 by Hammad Hassan
Assets are property with monetary value. A business is an asset, and so are a person’s possessions like a car, home, artwork, etc. Unfortunately, many people often take advantage of assets due to unfortunate accidents and circumstances. This might include a loved one losing their home because of a lawsuit by a business partner who is no longer interested in keeping ties with the owner.
It’s universally acknowledged that everyone wants their assets to have legal protection. However, not just any legal protection — there are plenty of companies out there offering that protection for a price. So how do you know whether or not you want your assets to be protected? Here are seven reasons you want your assets to be covered by legal protection.
1. To Minimize Malpractice and Liability Insurance Costs
You can minimize malpractice and liability insurance costs when your assets have the proper legal protection. This is because your assets are officially represented by a third party, who you can sue or take responsibility for the debt you owe if something happens to them and they don’t pay up.
Most insurance is designed to cover losses that may occur during normal business operations. However, you may be subject to lawsuits if you have real estate, a home, or other assets. Find a company specializing in legal protection for assets and purchase coverage now — if you wait too long, it might not be available or affordable.
2. To Prevent Estate Taxes
Many people have difficulty understanding how estate taxes are calculated in the US and why they are so high. In short, your taxes are based upon what percentage of your money passes on to the next generation when you die. Since you can’t take your assets with you, this is a ridiculously high percentage.
Your legal protection company will help set up an estate plan that will allow you to pass your assets to the next generation as much as possible without worrying about these exorbitant taxes. For example, if you own a home but leave it to your kids or grandkids, you are giving them a gift. But if you buy legal protection for the property, you can set up an estate plan to ensure they get a larger share of the house than they would otherwise receive. Documentation will be written up that states what percentage each inheritor gets of your assets with regard to the house and other property.
3. To Protect Your Business
If you own a business, your assets are in a very risky position. There is always the possibility that the business could be sued by anyone with an issue with one of your employees or customers. It might not even have anything to do with you. If this occurs, your assets could go up for auction, and someone can buy them at any time for any price they want.
On the other hand, if you have legal protection in place, the buyer can negotiate with your legal protection company to buy your assets. In this case, the legal protection company gets a portion of the sale price for their work.
4. To Enjoy the Peace of Mind
If you have a lawsuit regarding your assets, you don’t have to worry about it. You will get phone calls and emails from lawyers representing the legal protection company, and you can work with them to resolve the issue. Of course, there is no guarantee that something won’t happen or that you won’t lose a lawsuit — but knowing that your family or business will likely be protected is the ultimate peace of mind. For instance, family lawyers in Melbourne will be able to work with you and your legal protection company to ensure your home is protected from any potential lawsuits related to the death of a family member.
5. To Ensure Proper Documentation
When you move into a new home, getting title insurance is customary in case the seller defaults. You can also get an independent appraisal on your personal property that includes the fair market value of all your assets, whether purchased, inherited, or gifted to you. However, if you don’t have legal protection, these documents could be challenged and declared invalid by a judge. A lawyer specializing in legal protection for assets can help you set up proper documentation to ensure your assets are covered should someone challenge your ownership of them.
6. To Avoid Punitive Damages
Punitive damages are awarded as a result of a lawsuit by the plaintiff. A plaintiff will often want to change their judgment. If the total value of your assets is much less than what you owe them, they can award punitive damages in addition to any actual money that’s owed. If a judge or jury feels you have taken advantage of someone, they can award punitive damages against you. This could have an enormous effect on your assets and future ability to get ahead financially.
7. Gives You the Bargaining Power
If you’re being sued, there are only two sides involved — you and the plaintiff. However, if your assets have legal protection in place, the legal protection company that you chose will be included in the lawsuit. In this case, you will have an entire team of lawyers to represent your position and negotiate a settlement agreement.
Conclusion
If you’ve been delaying getting legal protection for your assets or putting it off in favor of something else, the time to act is now. You can be assured that with the proper documentation and legal protection in place, you will be able to keep your family and business together for generations to come
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