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Thursday, 19 September 2019
Agent Resource Center
This Old House - Do-it-Yourself

4 Ideas to Safeguard Your Real Estate Assets

Written by Posted On Friday, 13 September 2019 08:25

Do you own real estate? You will need special arrangements not only to protect your investment but to avoid lawsuits. In this sue-happy society, it becomes necessary for you to protect yourself. Precautionary measures can help you to protect your valuable assets.

Remember, a lawsuit against you and your business may snatch everything from you, such as a house, equity in home, car, bank account, and personal assets.

If you want to protect your real estate assets from a lawsuit and other problems, feel free to follow these precautionary measures.

Insure Real Estate Assets

If you want a reliable cover for your assets, you have to find a trustworthy insurance agent. The cover you need may depend on the type of assets you have.

For instance, your home can be covered with homeowners insurance. For businesses, you will need a separate policy.

An online search can help you to evaluate the insurance products of different companies. After selecting an agent, arrange a meeting with him/her.

Make sure to have the necessary information, such as types of business or personal assets, square footage, security, number of rooms, etc. Share this information with an insurance agent so that he can help you in the selection of the best coverage.

If you want Insurance for Luxury Real-estate, ask your agent to visit your property. It will help him to suggest the best coverage for your property. Before buying an insurance plan, it is essential to know the cost of property and the necessary things to cover.

Make sure to get information for the best payment structure. Some insurance policies require you to pay the whole principal upfront for the year. Others may allow you to pay in monthly installments.

Understand the Procedure to File Lawsuits

Once you discuss the limits of coverage with agents, ask the details of possible suits against your property. They may alert you for particular situations. Moreover, you can ensure coverage against exceptional circumstances.

After buying a policy, you will get a copy from your agent through your email or in your mail. Make sure to keep this copy at a safe location. A locker in a bank, fireboxes in business or home or filing cabinets can be suitable places.

Get Assistance from Legal Professional

Every state has different regulations to govern the protection of your real estate assets. For this reason, you will need the services of a legal professional.

They can help you to set up the best legal structure. A popular choice is LLC (limited liability corporation).

An LLC assumes the financial and legal responsibilities of assets. It can protect you from legal actions. Sometimes, a lawyer proposes a trust for asset protection. You would work as the benefits of this protection trust, while others become the trustee.

Remember, trustees, hold the legal titles, and beneficiary holds equitable interests. Property of trust is officially yours. It is a suitable method to avoid lawsuits for your assets.

You can select a structure based on the owners of a company. If you have a second owner, a traditional LLC may help you to treat each owner as an essential member.

In this situation, LLC can help you to protect your personal assets from lawsuits. It will protect the personal assets of each owner from any legal proceedings related to other owners. If you are the only owner, you have to set up an LLC (single-member). This LLC has different rules.

Before choosing a person as a trustee, you have to check the background of this person. You will need a trustworthy person to protect your assets. For the protection of more than one asset, you can set up different LLCs.

Feel free to set up one LLC per asset. With a series of LLC, you can hold your assets together. Check the rules of your state because series LLC are not available in some countries.

Protect Assets from Divorces and Deaths

If you want to do business with your spouse or partner, you may not consider a formal business relationship. It can be a mistake because legal complications can make your life hell in case of divorce or death.

Make sure to work with a formal business agreement and set up clear terms and conditions for divorce cases and died partners.

  

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