Common Ways to Attain Real Estate Asset Protection
We spend a big part of our lives improving on 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. Expensive risks such as creditor claims can be avoided through real estate asset protection. View here some of the common methods to protect your real estate property.
One of the most common ways to achieve real estate asset protection is through insurance. The insurance cover you need is determined by the type of asset you are protecting. An increase in wealth means you should increase your insurance coverage as well. For comprehensive coverage, you can decide to get an umbrella policy. Get in touch with an insurance professional, and they’ll take you through all the insurance policies available for your property’s protection.
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. 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. Anonymous land trust is a great way to avoid legal implications on your property. Having a trustee means your name will not be on any records. If a lawsuit is filed against you, the lawyers won’t trace your real estate properties. This is also a good way to discourage people from filing lawsuits. This is because they will need money to reveal your identity even before filing the suit. The cost of pursuing the lawsuit might be more than the compensation they are seeking.
Another great real estate asset protection strategy is titling your home. Being equal tenants with your spouse means you both have indivisible interest in the property. This interest serves to protect your home from creditors if either of you faces a lawsuit. This, however, is only applicable to your personal residence. In order to protect your commercial assets as well, you will have to get an investment property. Real estate asset protection is made possible with common tenancy.
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