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. 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. Be sure to get professional guidance regarding the policy you will choose for your property.
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. It is also wise to have 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. 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. 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. 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. Real estate asset protection is made possible with common tenancy.