MDNews - San Antonio

Asset Protection BEC AU SE O F T H E R I SK S and income potential, it is essential that medical profes- sionals consider asset protection to shield their assets. In many cases, the settlement of a lawsuit or claim turns on the value of the assets available to a successful plaintiff. Today's litigious society dictates a defen- dant's ability to protect himself or herself from a high-dollar judgment or claim by maintaining a low cash value and protecting assets. Asset protection can take many forms. Generally, a good plan requires layering various components to decrease the risk of asset loss. While each asset protection plan should include creating dif- ferent components and the strategic layering of such, a standard asset protection plan starts with the following: 1. Limiting the assets held by the medical professional outside of an entity. Assets held in individual names or otherwise not properly protected should be minimized. Asset plans should utilize trusts, limited liability companies and limited partnerships to protect assets. Although contributing assets into an entity is important, knowing which assets to separate into different entities creates important protection. 2. Utilizing proper contracts to shift liability away from the assets. Entity formation to hold assets and shift the liability away from the assets is essential. However, if the entity holding the assets also has an obligation to protect others from a lawsuit or accepts legal obligations for acts of others, the protections provided by placing the assets into an entity can be destroyed. 3. Understanding that cash, brokerage accounts and other liquid funds should be treated as an asset. Liquid funds not conta ined in a protected account should be moved to a protected account or treated as a n asset. A con- tingency attorney seeking to recover moneta r y da mages will move quick ly towa rd cash or assets easily turned into cash. Removing these assets from your individua l na me increases the diff icult y in accessing these assets by a third pa r t y. 4 . Ma inta ining the proper insura nce a nd at the correct level . A lt houg h not necessa r i ly pa r t of t he lega l a sset protection pla n, insura nce plays a v ita l role in a ny sol id a sset protect ion pla n . Insu ra nce pol icies must include a listing of a l l of t he proper entities a nd include a n a ck nowledg ment by t he i nsu ra nce compa ny recog n i zi n g responsibi lit y for cla ims brought a ga inst each of the va rious entities. Fa i ling to list each of t he properly na med entities on a pol ic y m ay a l low a n i n s u r a nc e c ompa ny t o ref u se covera ge. Because a n i nsu ra nce pol ic y is a cont ra ct , a nd t he obl i gat ions of t he i nsu ra nce compa ny a re on ly t hose s t at ed i n t he c ont r a c t , t he det a i l s cont a i ned w it h i n he policy a re essentia l. Too ma ny times medica l professiona ls fa i l to protect their a ssets a nd leave the a ssets at risk. W hile a properly executed pla n requ i res ti me to create a nd proper i mplement ation, t he va lue in a sset protection fa r exceeds such negatives. James Rose nblat t ha s bee n P reside nt of Rose nblat t Law F ir m an d C h air of th e t ran sa ct i o n a l sect i o n of th e f ir m since it ope ned in 20 05 . For the pa st 14 years , he ha s bee n providing legal and bu siness consulting in the areas of asset protection , bu siness , constr uction , contracts , employment , estate planning, mergers and acquisitions , oil and ga s , real estate, and trademarks. For more information , call Rosenblatt Law Firm at 210 - 562-2900 or visit rosenblattlawfirm .com . n James Rosenblatt MOST MEDICAL PROFESSIONALS FACE THE DOUBLE WHAMMY OF BEING PERCEIVED A S HIGH WAGE E ARNERS AND, SIMULTANEOUSLY, HIGH RISK FOR MALPR ACTICE L AWSUITS. M D N E W S . C O M /// M D N E W S S A N A N T O N I O ■ 2 019 L E G A L ❰❰❰❰❰ 1 3

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