You’ve worked hard, saved for decades, and have saved a nice nest egg for yourself and your family. One day, you are involved in a serious auto accident and the other party sues you. A sympathetic jury finds you liable for $10 million from the accident. How much of your assets could be seized by creditors?
You probably have never thought about this question, and hopefully, you will never be in such a scenario. However, we live in a litigious society, and if you have wealth, you can be sure that there are thousands of attorneys who would jump at the chance to bring a lawsuit against someone with deep pockets.
What we offer our clients is a Vulnerability Analysis, where we look at all of your assets and calculate what percentage of your assets could be seized by creditors. The goal of our Vulnerability Analysis is to determine the creditor status of each asset and help you substantially shift your wealth into assets which are exempt from creditors.
We will determine how much of a buffer your insurance will offer and show you which of your assets could be attached by creditors. We will make recommendations for moving funds to accounts, assets, and trusts which will offer creditor protection. It’s important to take these steps today, because you cannot “hide” assets from creditors after an event has occurred. By undergoing our Vulnerability Analysis process, you will know you have protected a large portion of your wealth from creditors, if you should ever find yourself in the unfortunate situation of being sued.
Each year, we can update your Vulnerability Analysis and make sure that you are protecting your family. While this analysis is particularly valuable for doctors who potentially face malpractice claims, it is also beneficial for anyone who owns a business or property. And while some professionals are keenly aware of the possibility of being sued, the reality is that almost anyone could be sued, even for the actions of their teenage children.
You may have done everything right for the last 25 years, but if all your assets are in non-exempt accounts, then your vulnerability is 100% today. That’s why the value of financial planning includes much more than just which mutual funds you pick. Our Vulnerability Analysis process is included for our Wealth Management clients; call or email me to find out how you can become a client.
I was the driver of the car in this photo. On June 15 of this year, another driver ran a red light and hit us, totalling the car. The other driver admitted he was at fault, was distracted and didn’t see the red light. Luckily, we all survived. You always think these things only happen to other people, but accidents can happen to anyone. Hope for the best and prepare for the worst.
