Common Ways to Attain Real Estate Asset Protection
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. In simple terms, real estate asset protection refers to the strategies you put in place to legally protect your property from third-party claims. This is very necessary for all businesses. With the right real estate asset protection in place, you are shielded from some of the most expensive risks such as creditor claims. Click for more information regarding real estate asset protection.
One of the most common ways to achieve real estate asset protection is through insurance. The insurance cover you need is determined by the type of asset you are protecting. As you increase your wealth, it is necessary to increase your insurance coverage as well. You can also choose to get an umbrella policy for comprehensive coverage. Be sure to get professional guidance regarding the policy you will choose for your property.
Getting limited liability for your rental property is also very fundamental to real estate asset protection. 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 stands as a separate entity and as such debtors will not have access to your personal assets. You should also get your commercial assets in different LLCs. By doing this, you ensure that one property facing risk won’t put the rest at risk.
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. Having a trustee means your name will not be on any records. If a lawsuit is filed against you, the lawyers won’t trace your real estate properties. People are also discouraged from filing lawsuits against you with this method. This is because they will need money to reveal your identity even before filing the suit. The amount of compensation they are looking for might not be worth the lawsuit.
The titling of your home is also a great real estate asset protection strategy. 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. You should keep in mind, however, that this indivisible interest can only be applied to your personal residence. For your commercial assets, you’ll need an investment property. Common tenancy is an amazing option for real estate asset protection.