Common Ways to Attain Real Estate Asset Protection
We spend a big part of our lives improving on our wealth. We need to protect that wealth long term, and that is where real estate asset protection comes in. In lose terms, real estate protection involves legally protecting your assets from all sorts of claims such as creditors. This is one of the best decisions you can make as you build your business. Having the proper real estate asset protection is one of the ways to protect yourself from expensive risks such as creditor claims. Read more now to found out more about ways to attain 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. An increase in wealth means you should increase your insurance coverage as well. You can also choose to get an umbrella policy for comprehensive coverage. Get in touch with an insurance professional, and they’ll take you through all the insurance policies available for your property’s protection.
Real estate asset protection can also be attained by getting limited liability for your rental property. This protects your personal assets in all circumstances such as lawsuits. 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. This way, if any of the assets face a risk, the safety of the rest of your property is assured.
Anonymous land trust is another important way to get real estate asset protection. This is a good way to protect your property from legal implications. 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.
Another great real estate asset protection strategy is titling your home. You get indivisible interest when you have your spouse as an equal tenant. 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. You can achieve real estate asset protection by using this common tenancy method.