Who needs asset protection?
An individual who is not able to adequately insure against his liability risks might need some form of asset protection planning. The threshold question for each individual is "Do I have any liability risk?"
Many, or most people do not have a serious liability risk. Despite all the talk and the hype, most people are not going to be sued. Those who are employed at a job do not face the same risk that business owners face. Similarly, an individual, not engaged in business, whose primary asset is his home, will generally be protected from liability by home owners insurance.
Some form of business activity is usually what creates liability risk. Ownership of rental real estate and or real estate development is at the highest end of the scale in terms of producing liability and risk to personal assets. Owning almost any type of business creates significant potential liability to customers, lenders, vendors, landlords and employees. Clearly professionals such as, physicians, attorneys and architects--to the extent that insurance is unavailable or inadequate--will usually need some level of asset protection advice.
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