The Need for Protection

Everyone is vulnerable to a lawsuit, and nearly everyone will someday be sued: Those are the modern facts of life. The following are but a few of the many examples -- drawn from real life -- of the need for asset protection:

 

* Partnerships A law firm is having its monthly partners' meeting. Their secretary goes out to pick up lunch. Unbeknown to the partners, the secretary has a horrible driving record. On the way back, she runs into a group of pedestrians. A judge decides that the partners were liable because the secretary was acting in the ordinary course of business. The jury, enraged by the secretary's driving record, awards $3,000,000 in damages. The partners are all jointly and severally liable.

* Joint Ownership A mother deeds her house to joint ownership with her son. She intends to avoid probate and estate taxes, and to make sure her son can "take care of things" if she gets sick. Unhappily, the son incurs a tax liability of $75,000., and is without assets at the time of the levy. IRS can and will seize and sell the mother's house.

* Children Your daughter has just gotten her driver's license. While returning from an errand to the grocery store, she turns up the volume on your car radio. She does not hear the siren of a rescue vehicle overtaking her to pass. The ensuing wreck leaves a trail of havoc that leads into court. Your insurance company settles the first case for policy limits -- leaving you high and dry on two other cases, and personally liable.

* Property Ownership A speculator bought a piece of vacant land, held it for a week, then flipped it to a developer. After houses were built, a homeowner noticed an old, buried drum. It turned out to contain a deadly toxin. The EPA finds the land to be a "superfund" site, and begins an action against the landowners, including the speculator. Even though the speculator's total investment was less than $200,000, his potential liability exceeds $1,000,000.

* Wildcat Banking An investor has banked with the same institution for years, and has purchased numerous properties using his good credit. Suddenly, a downturn in the market affects the values of all properties in the region, and drives down the value of the investor's collateral. Just as suddenly, his bank refuses to roll over his loans, and demands payment in full, a payment the investor cannot make.

Examples could continue endlessly, but the point is clear: Anyone can be on the receiving end of a lawsuit, which can lead to a substantial judgment. This book is intended to explain how you can protect yourself from these problems. It gives you the knowledge and power to protect yourself from the extraordinary calamities which can occur in a litigious world.

TABLE OF CONTENTS 

 

 

INTRODUCTION:ASSET PROTECTION

FIRST SECTION: THE NEED FOR PROTECTION

SECOND SECTION: LOSING STRATEGIES

THIRD SECTION: THE SAFE PATH

 

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