Posted by Liliana on July 09, 2003 at 07:45:58:
The insurance where I had only $10K in coverage was car insurance and I didn’t own any properties till very recenlty. I knwo now not to go cheap w/car insurance coverage.
Thanks for the advice!
Protecting Future Assets against lawsuits - Posted by Liliana
Posted by Liliana on July 08, 2003 at 10:23:27:
Hello there,
I was in a car accident in March of this year…I had very little coverage on my insurance ($10,000) and there were two cars involved. To repair one car was about $1100 and the other was $15958.65. State Farm covered the $15,958.65 but since my insuarance only covered $8996.64 they want me to reimburse them the rest of the amount…The bad thing is that I am in the process of buying 3 properties, if it weren’t for the cashflow they bring I would not be able to make any kind of payement arrangement but at the same time I want to protect my assets. I currently own a triplex, rent one unit, live in one and I’m fixing up the other one.
I heard that having a corporation or something would be much harder for an attorney to find my assets…Not sure that I’m explaining myself all that well here. If not, I’d be more than happy to explain again.
Thanks in advance.
L.
Re: Protecting Future Assets against lawsuits - Posted by Frank Chin
Posted by Frank Chin on July 08, 2003 at 15:19:16:
Hi Liliana:
I’m not an attorney, but thank God they’re only after you for several thousand dollars.
One thing I did after aquiring aseets was to have adequate insurance. I increased my “one million” umbrella policy to several million not too long ago.
Its silly to have $10,000 coverage, particularly if you own rentals. If there were serious injuries involved, they could sue for pain and suffering.
You can place your property in trusts to make it difficult for attornies to locate your assets. But in a major lawsuit, they can have you disclose your assets, and you either have to answer truthfully, or lie about it.
Just let this be a CHEAP lesson.
Frank Chin