Common Ways to Attain Real Estate Asset Protection
We spend most of our lives working hard to build our wealth. We need to protect that wealth long term, and that is where real estate asset protection comes in. Generally, real estate asset protection is a legal way to protect your assets from third party claims like creditors and individuals. This is very necessary for all businesses. With the right real estate asset protection in place, you are shielded from some of the most expensive risks such as creditor claims. View here some of the common methods to protect your real estate property.
One of the most common ways to achieve real estate asset protection is through insurance. The type of asset being protected will determine the insurance coverage you need. An increase in wealth means you should increase your insurance coverage as well. Getting an umbrella policy is also advisable so as to get 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. By doing this, you ensure your personal assets do not suffer in the event of a lawsuit. Whatever issues your business might be having will not affect your personal property in any way. Your business becomes its own entity, and thus debtors cannot claim your personal property. It is also wise to have your commercial assets in different LLCs. This will ensure that your assets will not suffer risks jointly.
Real estate asset protection can also be achieved through anonymous land trust. Anonymous land trust is a great way to avoid legal implications on your property. Having a trustee means your name will not be on any records. Lawyers will not be able to trace your properties in the event of a lawsuit. This method also serves to discourage people from pursuing lawsuits against you. 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 way to protect your assets is by titling your home. You get indivisible interest when you have your spouse as an equal tenant. 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. You can achieve real estate asset protection by using this common tenancy method.