Are All Your Assets at Risk?
- Topics:
- Property Management
- Tags:
- Asset,
- Asset Management,
- Business Operations,
- Corporate Insurance,
- Insurance,
- Liability Insurance,
- Operational Planning,
- TEXAS REAL ESTATE CLUB
- Source:
- TEXAS REAL ESTATE CLUB
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Overview: This article is not intended to alarm or frighten anybody, but to emphasize the importance of having a "system for doing business and making investments." For those of us who invest, have employees, or deal with the public, it is never too soon to take steps to protect our assets and our future. It is better to be four years too early than one day too late. While we may carry liability insurance, it is not always enough. There are numerous risks that are not covered by liability insurance—or the amount of coverage may be insufficient. And, there is always the possibility that the insurance company will not be able to pay in times of need. It is a lot easier to lose money than it is to earn it. Most of us know people who have inherited wealth only to end up losing it. All of us know people who have spent their lives working to provide for members of their family, accumulating assets they could enjoy in later years. With the correct use of corporations or LLCs, Roth IRAs, trusts, and family limited partnerships, it is possible to have a high degree of protection from all these threats. How these vehicles are used in combination with each other and the wording of the documents is of the utmost importance. If somebody sets up a well-planned system for doing business and making investments, he will indeed be able to prevent most lawsuits, cut taxes, and maintain greater privacy.
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Format: HTML | Date: Jan 2003 | Pages: 1
