5 Asset Protection Tips for Physicians

Here are five (5) Asset Protection tips for Physicians.

1. The first tip is make sure your primary residence is properly protected with your spouse/partner. This is the most important because in case of litigation, people's major concern is their house. Your house is important because it represents more than money. Rather, your house represents your family, your stability, and your future. You protect your house in Illinois by transferring your house into a Private Land Trust. A Private Land Trust is a way to own property where liens and judgments do not attach. This is important because if a lawsuit is filed against you and they are successful, a lien cannot be placed against your house. If you are married, your house should be titled inside the private land trust as tenancy by entirety.

2. The second tip is understand what assets are affected in case of a lawsuit. Any balances in checking accounts, savings accounts, mutual funds, stocks, bonds, and personal property are subject to the lawsuit and judgment. This means these assets are particularly vulnerable to lawsuits. Assets that are protected are retirement accounts, cash value life insurance, and annuities.

3. The third tip is make sure any investment or vacation property are properly protected. A Limited Liability Corporation (LLC) is an excellent way to title your real estate to insulate it from claims of your creditors (other than that piece of property). Creating an LLC is like creating a fictional person that owns the property interest.

4. The fourth tip is have an appropriate Living Trust that provides for your family in case of a disability or death. A Living Trust is a private document that dictates your wishes upon your death. Unlike a will, a Living Trust avoids the pain and agony of probate court.

5. The fifth tip is create a Family Limited Liability Corporation (LLC) to hold your vulnerable assets discussed in Paragraph 2. A Family LLC is an asset protection tool, which places your vulnerable assets beyond the reach of future creditors. This is important because it is difficult to collect on a judgment against a Family LLC. Physicians should use a combination of a variety of asset protection strategies.

Sean Robertson is an Physician Asset Protection Attorney based in downtown Chicago. Sean Robertson may be reached at 312-498-6080. Sean Robertson practices in Cook, Dupage, and Will Counties.