asset protection
Started by stealth1
there was a series of articles on it a few years ago in medical economics, I'll see if I can find the citation. Long story short, until you have appx $500,000 outright cash, there is no point. The most likely place you will loose your assests....Divorce. Much higher risk of losing $/assets than med/mal etc.
Protect your assets before you're sued. Robert Lowes. Medical Economics, Feb 2003
Asset Protection: What to do, how to do it. Marcy Tolkoff, JD. Medical Economics, June 2006
I'll try to attach the ppt slides only (in pdf format), went to a lecture I did last year.
T
Asset Protection: What to do, how to do it. Marcy Tolkoff, JD. Medical Economics, June 2006
I'll try to attach the ppt slides only (in pdf format), went to a lecture I did last year.
T
Advertisement - Members don't see this ad
I'd put all of your assets in Citigroup and Bank of America common stock...
According to my CPA and attorney, because you are providing professional services, you are fully responsible. Incorporation will give you tax advantages but will NOT provide asset protection from liability cases thanks to revised laws/rules.
You get protection up to $1 mil for retirement accounts (more for ERISA-regulated accounts such as 403(b)'s and 401(k)'s). There is also added protection for Rollover IRA's as some states regard these as the same as ERISA-regulated retirement plans. Yet another reason to put money away in retirement.
The best plan for asset protection is to have great liability insurance and to practice in a state that has a great tort reform law.
You get protection up to $1 mil for retirement accounts (more for ERISA-regulated accounts such as 403(b)'s and 401(k)'s). There is also added protection for Rollover IRA's as some states regard these as the same as ERISA-regulated retirement plans. Yet another reason to put money away in retirement.
The best plan for asset protection is to have great liability insurance and to practice in a state that has a great tort reform law.
Solid gold bars. Hidden under the bed. I am not kidding.
Wedding rings (think Kobe during the rape trial) and primary residencies (in some states)
There is also always:
Jewels
Rolexes
Guns
There is also always:
Jewels
Rolexes
Guns
That's a really scary setup if things don't work out with the wife.
Advertisement - Members don't see this ad
So this topic came up at dinner last night in a much broader sense. As in when the economy collapses and the end of the world is nigh. We came to the conclusion that: Guns, Arable land, fresh water and fertile women would be the best assets to stock. So the moral is, buy land in montana with an underground water source and start a cult with lotsa guns.
So the YFZ cult in Texas is all set then?
Also consider your spouses or LLC ability to get sued:
Option 1- Wife LLC: You really think that your chances of being sued with damages awarded greater than your coverage is MORE than your chances of getting divorce??? A better option would be a umbrella policy in addition to your standard med mal.
Option 2 - Brother/Sister/Father/Mother: Can be a better way to go, unless they are at risk as well (e.g. my brother is an interventional radiologist, and my father is a high risk attorney, both are at high risk of being sued).
I'm by no means an expert, I just read up on it a while back, I'm interested in others thoughts 😕
Option 1- Wife LLC: You really think that your chances of being sued with damages awarded greater than your coverage is MORE than your chances of getting divorce??? A better option would be a umbrella policy in addition to your standard med mal.
Option 2 - Brother/Sister/Father/Mother: Can be a better way to go, unless they are at risk as well (e.g. my brother is an interventional radiologist, and my father is a high risk attorney, both are at high risk of being sued).
I'm by no means an expert, I just read up on it a while back, I'm interested in others thoughts 😕
I have a P.S. (professional services corp -- what my state code has as a way for doctors to incorporate). My attorney said that it provides an extra layer of protection, but not a super strong or impenetrable one. On the other hand, it is quite rare for personal assets to be in play in a lawsuit.
There are reasons other than asset protection to incorporate -- for me it is the ability to dump a crapload of pretax earnings into a SEP.
There are reasons other than asset protection to incorporate -- for me it is the ability to dump a crapload of pretax earnings into a SEP.
You don't need to incorporate to contribute to a SEP.
sorry if this post doesn't belong in this thread
I'm a third year medical student trying to learn more about EM. One of the things that scares me about EM (sued every five years on average?) and medicine in general is getting sued. It sounds very unpleasant on many levels, but unfortunately (or fortunately) I don't have much first hand experience with it. Any words of wisdom for a young med student? Can it really ruin your career? Is it a reason to think twice about doing EM?
greatly appreciated
Ed Bob
I'm a third year medical student trying to learn more about EM. One of the things that scares me about EM (sued every five years on average?) and medicine in general is getting sued. It sounds very unpleasant on many levels, but unfortunately (or fortunately) I don't have much first hand experience with it. Any words of wisdom for a young med student? Can it really ruin your career? Is it a reason to think twice about doing EM?
greatly appreciated
Ed Bob
Everyone gets sued at some point. You may do nothing wrong and still get sued.
Wife is also a doc...oops.
Advertisement - Members don't see this ad
Similar threads
