Litigation is a profitable business. Predatory attorneys know how to make money by starting lawsuits, and there is a never-ending pool of potential plaintiffs, eager to cash in. The cultural standards which once would have discouraged such conduct have all but disappeared.
The likelihood of becoming a victim of such litigation depends on two factors: the depth of your pockets and your potential for liability. If you don’t have any money, you’re unlikely to be sued. A potential plaintiff will have difficulty collecting on a court judgment. And if you have no potential for liability, there is no basis for a lawsuit.
If you’re thinking about asset protection, you’ve most likely accumulated significant assets in your lifetime. And, unfortunately, the more assets you have, the more vulnerable you are to liability and the more of a target you become.
Car accidents
Driving is an extremely dangerous activity, one that opens you up to liability on a daily basis. One quick mistake could change everything. You can be held liable not only for your own mistakes, but also for the actions of others who drive your vehicle. If the damage caused results in a judgment that exceeds your insurance coverage, your personal assets could be at risk to satisfy it.
Or, even worse, your insurance might not cover any of it. What if your teenage son takes your car out and lets a friend drive it? What if you loan your car to a cousin, but you didn’t know her driver’s license was suspended?
Business lawsuits
Businesses are a preferred target for many plaintiffs. Claims can come from the inside as well as the outside.
- Lawsuits filed by employees: Lawsuits by employees and former employees are on the rise. Employees can bring any number of claims, including discrimination, sexual harassment, wage and hour violations, wrongful termination, etc. The more employees you have, the greater the risk. While there are many steps you can take to prevent this (such as using well-crafted employment agreements), disgruntled employees are often an inevitable part of the business landscape.
- Lawsuits caused by employees: You can be held liable for the actions of your employees while they are on the job. A bad employee can be a bad liability for your business.
- Customer lawsuits: Lawsuits by customers can stem from anything from premises liability (“I tripped on the welcome mat”) to discrimination (“They did not let me bring my service animal inside”).
Americans with Disabilities Act (ADA) lawsuits have become popular in recent years, with many plaintiffs greatly abusing the system in states like California. Often the same attorney/plaintiff “team” will work together and file hundreds of lawsuits against multiple businesses.
Real estate disputes
Real estate investment can be lucrative, but it can also be a liability. You might have multiple properties, numerous tenants, or properties in different states. It’s a lot to manage, and you can’t be everywhere at once. You probably have to rely on a property manager, and if they fail to maintain the premises and someone gets hurt, you’ve got a problem.
And tenant disputes are all too familiar to landlords. They can easily escalate and make their way into the courts if you’re accused of housing discrimination or wrongful eviction.
Professional malpractice
Even respected professionals like physicians and dentists are not immune. Not only are they viewed as having deep pockets, but the nature of the legal system makes for inconsistent and unpredictable results. You’ve got a plaintiff’s lawyer, who is not a doctor, in front of a judge and jury, also not doctors, questioning a doctor’s medical decisions. Emotionally charged awards handed down by a jury of laypeople can ruin your medical practice as well as devastate your personal fortune.
Working hard and being successful is a worthwhile goal, but if you’re not prepared, it can also open you up to liability. A lawsuit can come from many different angles. Fortunately, you can plan for the unexpected. The right asset protection plan not only safeguards your wealth; it deters lawsuits in the first place. The key, though, is to put your asset protection plan in place long before a lawsuit arises.
Sollertis can help with asset protection
The Sollertis Master Asset Protection Plan™ is the framework for protecting all of the individual assets that contribute to financial success. Based on an analysis of your needs, each plan is a customized blueprint outlining the types and mix of legal structures needed to best meet your specific goals and objectives.
Once a MAPP™ is designed, you have a plan in place to protect your assets and to guide business, personal and investment decisions. Unlike traditional asset protection plans that take a “one-size-fits-all” approach, a MAPP™ adapts to changing circumstances. Whether implemented all at once or over time, you will create greater financial freedom knowing you’ve legally protected the wealth you have earned.
Contact us today to learn more about the Sollertis MAPP™ and our unique approach to managing all of your legal needs.
This material has been prepared by Sollertis for informational purposes only and nothing herein is intended as legal advice for any particular or individual situation. You should not rely upon any information herein as a source of legal advice, and receipt of any such information does not create an attorney-client relationship between you and Sollertis. Viewers and readers should not act upon this information without seeking professional legal counsel. Prior results do not guarantee a similar outcome.
