Common Ways to Attain Real Estate Asset Protection
Most of our life is spent on amassing wealth for ourselves. To protect that wealth long term, real estate asset protection is very important. Generally, real estate asset protection is a legal way to protect your assets from third party claims like creditors and individuals. This is one of the best decisions you can make as you build your business. With the right real estate asset protection in place, you are shielded from some of the most expensive risks such as creditor claims. Read more now to found out more about ways to attain real estate asset protection.
Insurance is one of the most common ways to attain real estate asset protection. The type of asset you are protecting determines the insurance cover you will need. 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. Contact an insurance professional today and inquire about features of the policy you want to choose for your property.
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 arising in your business cannot be settled by your personal property. 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. By getting an anonymous land trust, you can avoid legal implications on your property. With a trustee, your name will not be found on any records. In the event of a lawsuit, the lawyers will not be able to trace your trust to your real estate properties. People are also discouraged from filing lawsuits against you with this method. Even before filing the suit, they will have to spend money on revealing your identity. The cost of pursuing the lawsuit might be more than the compensation they are seeking.
Another great real estate asset protection strategy is titling your home. Being equal tenants with your spouse means you both have indivisible interest in the property. This interest serves to protect your home from creditors if either of you faces a lawsuit. It is important to note that indivisible interest is only valid for your personal residence. You will have to get an investment property for your commercial assets. Real estate asset protection is made possible with common tenancy.