As a physician or dentist, protecting your assets is crucial for financial safety and stability. As a Medical Practice Owner, you need to be concerned not only with protecting your personal assets from potential lawsuits, but also protecting your medical practice assets.
As a medical professional, you have studied for years and worked hard to get where you are. Maintaining your financial well-being should be top of mind. Professional financial advisors are well versed in making sure your portfolio is set up to your advantage.
6 Common Asset Protection Mistakes
Medical professionals often make mistakes in their asset protection that fall into 6 areas. Make sure your portfolio does not contain these common mistakes:
- Be certain to have a buy-sell agreement in place for your practice
- Make sure you are covered by an “umbrella liability” insurance policy
- Know that living trusts are not protected from creditors
- Remove your name as co-owner from titles (such as high liability vehicles) you cannot control, removing your risk of liability from a lawsuit.
- Understand the protection limits of 401(K)s and IRAs
- Protect the assets you wish to leave your heirs not only from external threats, but from other family members.
Launching a new practice is a thrilling time for a medical professional. Usually you are so focused on establishing a new business, you may overlook another essential element – designing the exit strategy. Having this agreement in place provides a blueprint that guides what happens during any eventual buyout, sale, divorce or owner death. They help to diminish risks that could hinder or even destroy a business at some point in the future.
Typically, a buy-sell agreement is put in place to protect an owner’s family, in the case of a partner death, debilitation, or a decision to exit or retire – allowing remaining owners to move forward with the business.
Personal asset protection tools can protect you from malpractice claims and other liabilities such as faulty products, sexual harassment, employment discrimination, breach of contract, and workplace accidents. But they can also be used to reduce your tax burden and for estate planning.
Structures for asset protection fall into 3 basic categories:
- Retirement accounts
- Domestic asset-protection trusts
- Annuities and life insurance
With asset protection planning, you can protect your wealth and your future retirement. We offer different insurance strategies to help you protect your money.
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