Imagine you and your spouse are out
for a drive on a rainy day, a child runs into the road,
and the worst possible thing happens.
In addition to the emotional shock and
heartbreak, you soon learn that you have been named as
defendants in a wrongful death lawsuit.
You call your auto insurance agent
and ask how much coverage you have in this case, and are
told that your coverage is the minimum the state requires,
which is $300,000. Your insurance agent advises you that
the company will assign a defense attorney to defend you.
Some days later you meet with the
defense attorney who has requested a complete list of your
financial assets and liabilities.
As you prepare the financial statement you realize
what a strong financial position you are in. You have a
mortgage-free residence valued at $300,000, a $400,000
IRA, $875,000 in stocks and bonds, and $275,000 in cash
Frankly, most couples in their 50s would feel quite secure
with a net worth of $1,850,000 and several years to earn
prior to your planned retirement.
Two days later you receive a
complaint from the attorney for the child’s parents
claiming damages of $5,000,000.
You forward the complaint to your defense attorney
and he advises you that, if you proceed to trial, you are
quite likely to lose.
He suggests that you might want to
engage in some planning to protect what you can, but
because the lawsuit has occurred, there is little you can
do to protect your assets. You are forced to hire a
bankruptcy attorney to determine how much of your property
can be protected from the $5,000,000 lawsuit by filing for
The bankruptcy attorney requests a $25,000 retainer.
It dawns on you that you thought
about meeting with your estate planning attorney to
discuss asset protection, but decided that you were
protected with your insurance and didn’t really have time
for a meeting.
Unfortunately, scenarios like this
occur every day in America; and once you have a legal
problem it’s too late to do asset protection planning.
It’s like trying to buy insurance for your boat
while it’s sinking in the midst of a storm.
Planning has to be completed when the skies are
clear, and before anyone has any possible claim on your
We recommend that you contact us soon
to learn about your family’s asset protection options.
here to have our office call to set up a time to
discuss this further
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