Common Ways to Attain Real Estate Asset Protection
Most of our life is spent on amassing wealth for ourselves. We need to protect that wealth long term, and that is where real estate asset protection comes in. In simple terms, real estate asset protection refers to the strategies you put in place to legally protect your property from third-party claims. This is very necessary for all businesses. Expensive risks such as creditor claims can be avoided through real estate asset protection. Read more now to found out more about ways to attain real estate asset protection.
Insurance is one of the most common ways to attain real estate asset protection. The insurance cover you need is determined by the type of asset you are protecting. Your insurance coverage needs to increase with the increase in wealth. For comprehensive coverage, you can decide to get an umbrella policy. Get in touch with an insurance professional, and they’ll take you through all the insurance policies available for your property’s protection.
You can also protect your real estate assets by getting limited liability. By doing this, you ensure your personal assets do not suffer in the event of a lawsuit. Any issues or challenges your business might face will not affect your personal assets. The business is a separate entity and as such debtors have no right to claim your personal property. It is also wise to have your commercial assets in different LLCs. By doing this, you ensure that one property facing risk won’t put the rest at risk.
Anonymous land trust is another important way to get real estate asset protection. This is a good way to protect your property from legal implications. With a trustee, your name will not appear on any records. Lawyers will not be able to trace your properties in the event of a lawsuit. This is also a good way to discourage people from filing lawsuits. This is because they will need money to reveal your identity even before filing the suit. The compensation they are seeking might not be worth the investment.
Another great real estate asset protection strategy is titling your home. You get indivisible interest when you have your spouse as an equal tenant. This way, if either of you gets a lawsuit, creditors cannot come for your house because of the interest. This, however, is only applicable to your personal residence. For your commercial assets, you’ll need an investment property. You can achieve real estate asset protection by using this common tenancy method.