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. Generally, real estate asset protection is a legal way to protect your assets from third party claims like creditors and individuals. 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. Click for more information regarding real estate asset protection.
Insurance is one of the most common ways to attain real estate asset protection. The type of asset you are protecting determines the insurance cover you will need. An increase in wealth means you should increase your insurance coverage as well. 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.
Real estate asset protection can also be attained by getting limited liability for your rental property. By doing this, you ensure your personal assets do not suffer 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. Real estate asset protection can also be achieved by having 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 appear on any records. In the event of a lawsuit, the lawyers will not be able to trace your trust to your real estate properties. People are also discouraged from filing lawsuits against you with this method. 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.
The titling of your home is also a great real estate asset protection strategy. Indivisible interest in the property can be attained by having your spouse as an equal tenant. This interest serves to protect your home from creditors 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.