Common Ways to Attain Real Estate Asset Protection
We spend most of our lives working hard to build our wealth. 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 one of the best decisions you can make as you build your business. Having the proper real estate asset protection is one of the ways to protect yourself from expensive risks such as creditor claims. Read more now to found out more about ways to attain real estate asset protection.
Insurance is one of the most common ways to attain real estate asset protection. The type of asset being protected will determine the insurance coverage you need. Your insurance coverage needs to increase with the increase in wealth. For comprehensive coverage, you can decide to get an umbrella policy. 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 means your personal assets are safe even in the event of a lawsuit. Whatever issues your business might be having will not affect your personal property in any way. The business is a separate entity and as such debtors have no right to claim your personal property. It is also wise to have 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. If a lawsuit is filed against you, the lawyers won’t trace 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 cost of pursuing the lawsuit might be more than the compensation they are seeking.
Another great way to protect your assets is by titling your home. You get indivisible interest when you have your spouse as an equal tenant. This means creditors have no right to your home if either of you faces a lawsuit. This, however, is only applicable to your personal residence. You will have to get an investment property for your commercial assets. You can achieve real estate asset protection by using this common tenancy method.