We spend a big part of our lives improving on our wealth. To protect that wealth long term, real estate asset protection is very important. In lose terms, real estate protection involves legally protecting your assets from all sorts of claims such as creditors. This is a very important strategy for any business. Having the proper real estate asset protection is one of the ways to protect yourself from 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 you are protecting determines the insurance cover you will need. Your insurance coverage needs to increase with the increase in wealth. Getting an umbrella policy is also advisable so as to get comprehensive coverage. Be sure to get professional guidance regarding the policy you will choose for your property.
You can also protect your real estate assets by getting limited liability. This means your personal assets are safe even in the event of a lawsuit. Any issues arising in your business cannot be settled by your personal property. The business is a separate entity and as such debtors have no right to claim your personal property. You should also get your commercial assets in different LLCs. By doing this, you ensure that one property facing risk won’t put the rest at risk.
You can also protect your assets through anonymous land trust. By getting an anonymous land trust, you can avoid legal implications on your property. 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. Even before filing the suit, they will have to spend money on revealing your identity. The compensation they are seeking might not be worth the investment.
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. You should keep in mind, however, that this indivisible interest can only be applied to 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.