While driving to an appointment, one of your workers remembers he needs to get in touch with a co-worker regarding a meeting. He dials the number on his mobile phone, and takes his eyes off the road. In that instant, a vehicle facing him shifts lanes, and he hits it, critically injuring a 78-year-old girl. Under this exact scenario, a jury awarded a $21 million ruling against Dykes Industries of Little Rock, Arkansas.
Are you able to purchase enough insurance to cover an unanticipated business obligation? NO. Insurance insures insurance, and a first legal defense only covers actual damages. Punitive damages are NOT covered by insurance.
DATA ON AUTO ACCIDENTS AND PERSONAL INJURY LAWYERS
More than 42,000 deaths happened in motor vehicle injuries in 2001. DUI auto accidents are part of the rising rate in these deaths, according to prominent DUI Nashville Attorney, Sean Park. Could one of these have been committed by one of your employees?
There’s an army of personal injury lawyers on the Internet ready to be of service on a contingent fee basis, and more are becoming educated in universities and colleges. Give it a shot; use Google and type in “injury attorney” and here’s the “Results 1 – 10 of about 1,120,000 for ‘injury lawyer’.”
The courts allow it to be easy to litigate. They have learned that if they are able to tie you up in court for a number of years, it is simpler to settle than to fight. If they are able to get sympathy from a jury, it translates to larger fees. Whether you win or lose — you lose; at $350 — it is not cheap to become involved in a court fight, even if you are right.
The negligent action of a single worker can cause you to lose things other than your company if you are a small company owner. You may become personally liable for even assets that are unrelated to your organization.
THE BEST WAY TO PREVENT PERSONAL INJURY LAWYERS FROM TAKING YOUR PERSONAL ASSETS
How do you prevent these injurious attorneys from “stealing” your personal assets and keep them away? The key is the way you own your organization.
If you like to take chances and get a high, or if you are an adrenaline junkie, you would not value asset protection. You would think it’s for the rich who have something to hide. If you believe that you’re covered by insurance, you haven’t been sued by a lender and his clever private lawyer’ yet. You’re an easy target, and if they deem it is worth the fee and time to file a suit, they will come after you — perhaps not today, but very shortly.
HOW TO PROTECT YOUR ASSETS FROM ATTORNEYS
What is asset protection?
Each of your assets should have a financial target. What is your financial goal for your deposit, your vacation spot, your personal home, your IRA, your investment accounts, and your other valuable assets?
Along with your personal residence, the bank is protected by virtue of a mortgage to the real estate. It’s your personal equity in your house that’s wide open to get a lawsuit. Do you have minor children learning how to drive your car? Did you know that you assume total responsibility for their negligence? Would you own your property in your name together with your partner? Are you aware that if either one of you gets sued, you can lose more than just your house?
Tax law permits deduction for mortgage interest and property tax deduction. There are just two monetary goals to your personal residence: protection from potential lenders and villainous lawyers, as well as their injurious counterpart, and tax deductions for the interest on mortgage and real estate tax deductions.
USE THE LAW TO PROTECT YOUR ASSETS FROM PERSONAL INJURY LAWYERS
Under civil law, if your home is owned by an unaffiliated trust with the independent trustee, you will have repositioned (transferred) your home from you and your spouse to an irrevocable trust whereby you no longer own the house.
Use “law,” not secrecy, to reposition your automobiles, your corporate stock, your sub “S” stock, your vacation spot, your business assets, your commercial real-estate investments, your deposit, your IRAs, your financial investments, and so forth. Each of your assets should have a protection target and a financial asset.
Ask yourself for what purpose would you need this protection and whom you desire protection from? For every asset, you must discover your financial goal and the proper legal entity to reach those objectives?
Beginning the processes to implement basic measures to thwart creditors and contingent fee lawyers, including personal injury attorneys, is the first step. It always starts with merely a thought, does it not? Plant that seed, then act upon it. You will start to have more restful sleep and realize that you will be making miserable personal attorneys find strange bedfellows.