Secure Your Future

Estate planning • Probate • Estate Administration • Business Planning

Case Study: Asset Protection

The Situation:
Our client owned a number of rental properties in a major U.S. city. These rental properties consisted of residential as well as commercial properties. Due to the litigious nature of our society, our client was concerned about becoming a target for a lawsuit if the extent of his real estate holdings were made public.

We counseled our client to segregate his liability and reduce his overall exposure by establishing separate limited liability companies to own each of his properties. By owning his properties in separate limited liability companies, our client was able to ensure that if a lawsuit was to arise in connection with one property, that the other properties would not be exposed to the lawsuit.

What We Did:
In order to alleviate our client’s concerns, we suggested that he first review his insurance policies to ensure that he had adequate property and casualty insurance on his properties, as well as a good umbrella policy. In addition, we counseled our client to segregate his liability and reduce his overall exposure by establishing separate limited liability companies to own each of his properties. By owning his properties in separate limited liability companies, our client was able to ensure that if a lawsuit was to arise in connection with one property, that the other properties would not be exposed to the lawsuit. Our client was also able to ensure that he was adequately protected in the event that any claims were to arise that were not covered by insurance.

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