3 Asset Protection Tips For Physicians
Medical professionals, whether you are a physician, dentist, pharmacist, or anyone else in any medical industry, you probably know that the practice of medicine is a profession fraught with liability. It’s not just medical malpractice claims either – employment related issues, careless business partners and employees, contractual obligations, and personal liabilities add to the risk assumed by a medical professionals in private practice.
Here Are 3 Asset Protection Tips:
Tip #1 – Insurance
Liability insurance is the first line of defense against a claim. You should carry the highest insurance limits possible on your lines of insurance. This includes:
- Homeowner’s insurance
- Property insurance on investment properties
- Excess liability insurance (also known as “umbrella” insurance)
- Automobile and other vehicle (motorcycle, boat, airplane) insurance
- General business insurance
- Professional liability insurance
- Directors and officers insurance
Tip #2 – State Exemptions
Depending on your scenario, there are some laws that completely or partially exempt certain types of assets owned by residents from the claims of creditors. For example, a homestead protection may be available to you. In addition, some certain assets are afforded protection from creditors. Such as certain types of retirement accounts, life insurance, annuities, college funds, and more, just to name a few.
Tip #3 – Business Entity Protection
As a business owner in the medical industry, you can mitigate the risks and liabilities by doing business using a business entity. Business entities can be legal partnerships, limited liability companies, and corporations. The right structure for your business should take into consideration asset protection, income taxes, estate planning, retirement funding, and business succession goals.
Business entities can help shield your assets from lawsuits. Business entities are another layer of protection between your personal assets and business lawsuits.
A great estate plan should include all of these tips which combined together create a multi-layered asset protection plan. Medical industry professionals have unique estate planning needs involving their licenses. If not planned for correctly, they jeopardize their loved one’s inheritance of their hard work they put into their private practice.
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