Methods to Legally Protect Your Real Estate Assets
Most of our life is spent on amassing wealth for ourselves. Real estate asset protection is one strategy that is aimed at protecting that wealth long term. In simple terms, real estate asset protection refers to the strategies you put in place to legally protect your property from third-party claims. This is very necessary for all businesses. Having the proper real estate asset protection is one of the ways to protect yourself from 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 insurance cover you need is determined by the type of asset you are protecting. 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.
Real estate asset protection can also be attained by getting limited liability for your rental property. 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. 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.
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 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 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 amount of compensation they are looking for might not be worth the lawsuit.
Another great real estate asset protection strategy is titling your home. Indivisible interest in the property can be attained by having your spouse as an equal tenant. This means creditors have no right to your home if either of you faces a lawsuit. You should keep in mind, however, that this indivisible interest can only be applied to your personal residence. For your commercial assets, you’ll need an investment property. Real estate asset protection is made possible with common tenancy.