Methods to Legally Protect Your Real Estate Assets
We spend most of our lives working hard to build 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 very necessary for all businesses. 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.
Insurance is one of the most common ways to attain real estate asset protection. The type of asset being protected will determine the insurance coverage you need. Your insurance coverage needs to increase with the increase in wealth. 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. By doing this, you ensure your personal assets do not suffer in the event of a lawsuit. Any issues or challenges your business might face will not affect your personal assets. The business is a separate entity and as such debtors have no right to 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. This is a good way to protect your property from legal implications. 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 compensation they are seeking might not be worth the investment.
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 means creditors have no right to your home 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. You can achieve real estate asset protection by using this common tenancy method.