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4 Things You Must know If You’re Planning Your Property Protection

4 Things You Must know If You’re Planning Your Property Protection

Given the high cost of jury verdicts today, many professionals are looking for ways to protect their personal property from malpractice and negligence claims. For example, if you’re a healthcare professional and own a home, a car or a portfolio of stocks, it’s essential to protect your assets against lawsuits. The good news is that sound financial planning can go a long way to keeping your personal net worth from the threat of litigation. A comprehensive wealth management plan can also help you achieve other long-term financial goals, which may include planning a child’s education, ensuring a comfortable retirement for you and your spouse and minimizing property taxes for your heirs. While it’s advisable to seek out professional opinion from professional limited liability companies, like Wyoming, when planning your assets protection, also keep these 4 things in mind.

1. Have An Idea About Property Protection 

Never jump in making decisions, especially when it comes to protecting your assets. Make efforts to know what‘s involved and what it’ll definitely cost you. Note that:

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  • A well-structured financial plan discourages prosecution.
  • Good asset protection should not be expensive.
  • An experienced asset manager can help you take a more integrated approach to achieving your financial goals.

Starting with the basics, there are three levels of asset protection. The first is to invest in assets that are automatically protected against lawsuits in most states, such as your home, qualified retirement accounts, annuities and the cash value of life policies. The second level is the creation of private trusts and companies that remove assets from your personal domain. The third level is the creation of personal property entities in different jurisdictions, making it more difficult for people to place privileges on your assets through a lawsuit.

For many physicians, a good starting point is to simply implement the first level of asset protection – get the most out of your investments in assets that are automatically protected from lawsuits in most states. Many health professionals neglect these simple strategies:

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  • Your house. Part of your equity is generally exempted from prosecution in most states. In Arizona, for example, up to $ 150,000 in equity is exempted from legal action.[1] Texas and Florida offer unlimited coverage for equity at home.[2] Once you have reached the equity ceiling of the protected property in your state of residence, you may want to consider maintaining a mortgage loan for the mortgage. Plaintiffs in a lawsuit will not be interested in your debt-only assets.
  • Qualified retirement accounts. Funds held in ERISA-eligible retirement accounts, such as defined benefit plans or 401 (k) plans, are generally exempt from prosecution, so it is often logical to maximize your annual contributions to these accounts. Not only do you benefit from asset protection, but you will also benefit from tax-efficient savings, helping you to increase your capital. Unskilled pension plans, such as deferred compensation plans, may also have a role to play in helping you achieve your wealth management goals. Unskilled plans offer some protection against lawsuits, as well as unique benefits for highly paid business owners and employees.
  • Deferred annuities. A deferred pension represents the money you set aside today to create future income, usually for retirement. If you have not yet started making distributions of your deferred annuity, the value of your annuity contract is generally exempt from prosecution. In addition to providing asset protection, annuities can help supplement other sources of income in retirement, such as social security or withdrawals from your IRA or 401 (k) accounts.
  • Cash value of life insurance schemes. Once you have held a life insurance policy for more than two years, the cash value of the policy is generally protected from lawsuits in most states. In addition, the cash value of the policy can often be accessed through withdrawals and tax-free loans at retirement, which can be particularly attractive if tax rates increase in the future. In addition, insurance policies can also be a useful way to transfer wealth to future generations.

2. Myths Aren’t Facts

There are often lots of misunderstandings on asset protection, especially between doctors and other health professionals about strategies that offer true peace of mind. Don’t follow someone’s thoughts or what they think is involved or you should do. The best thing to do is seek a professional’s guidance and opinion to help you make the right decision.

3. Explore Advanced Strategies

If you are just starting your career, the first level of protection (investing in assets that are automatically exempt from prosecution) may be all you need right now. As you go further in your career and your personal equity continues to grow, you may want to consider exploring some advanced strategies for asset protection, including the creation of trusts, companies, and LLCs. In addition, you may consider establishing these entities in different jurisdictions, making it more difficult for people to place liens on your personal property. Take note that “protective” trusts, corporations and LLC(s) can be expensive to generate and maintain, so you should explore all options with your team of trusted advisors before pursuing asset protection solutions.

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4. Create an Air-Tight plan

The most effective asset protection strategies start with sound financial planning.[3] If a judge or court determines that you’re trying to “conceal” assets to creditors, they can remove the exempt status of those assets. For example, if you buy an important life insurance policy shortly before bankruptcy, a court can determine that any assets involved in “last-minute” transactions are still being litigated. The best protection for your assets is to show that you have legitimate reasons for structuring your assets with many other benefits in the way that makes the most sense to you and your family in the long run. In a court of law, your intention is the key. Your intention to set up accounts cannot be to avoid situations of liability. Instead, your intention should be associated with responsible and ethical financial planning, (planning a comfortable retirement or the smooth transfer of your estate to your heirs).

The approaches mentioned here are simply “conversation starters” to have with your wealth manager, lawyer and tax professional. Each physician has unique needs and goals, so your personal asset management and asset protection plan will need to be tailored to your specific situation. In addition, asset protection laws may vary considerably among states. The key to creating an effective asset protection plan starts now before you need it. By creating a team of trusted professionals, discussing your goals and reviewing your plan on a regular interval, you can generate a wealth management plan that can fully covered you from unforeseen circumstances – a plan that helps you feel more confident about your financial future.

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Featured photo credit: WonHo Sung via unsplash.com

Reference

[1]Arizona State Senate Issue Brief: Arizona’s Homestead Exemption
[2]Robinson, Tigue, Sponcil & Associates: Protecting Your Assets from Malpractice and Negligence Suits
[3]Public Deposits: 6 Characteristics of a Sound Financial Plan

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Last Updated on August 16, 2018

10 Huge Differences Between A Boss And A Leader

10 Huge Differences Between A Boss And A Leader

When you try to think of a leader at your place of work, you might think of your boss – you know, the supervisor in the tasteful office down the hall.

However, bosses are not the only leaders in the office, and not every boss has mastered the art of excellent leadership. Maybe the best leader you know is the co-worker sitting at the desk next to yours who is always willing to loan out her stapler and help you problem solve.

You see, a boss’ main priority is to efficiently cross items off of the corporate to-do list, while a true leader both completes tasks and works to empower and motivate the people he or she interacts with on a daily basis.

A leader is someone who works to improve things instead of focusing on the negatives. People acknowledge the authority of a boss, but people cherish a true leader.

Puzzled about what it takes to be a great leader? Let’s take a look at the difference between a boss and a leader, and why cultivating quality leadership skills is essential for people who really want to make a positive impact.

1. Leaders are compassionate human beings; bosses are cold.

It can be easy to equate professionalism with robot-like impersonal behavior. Many bosses stay holed up in their offices and barely ever interact with staff.

Even if your schedule is packed, you should always make time to reach out to the people around you. Remember that when you ask someone to share how they are feeling, you should be prepared to be vulnerable and open in your communication as well.

Does acting human at the office sound silly? It’s not.

A lack of compassion in the office leads to psychological turmoil, whereas positive connection leads to healthier staff.[1]

If people feel that you are being open, honest and compassionate with them, they will feel able to approach your office with what is on their minds, leading to a more productive and stress-free work environment.

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2. Leaders say “we”; bosses say “I”.

Practice developing a team-first mentality when thinking and speaking. In meetings, talk about trying to meet deadlines as a team instead of using accusatory “you” phrases. This makes it clear that you are a part of the team, too, and that you are willing to work hard and support your team members.

Let me explain:

A “we” mentality shifts the office dynamic from “trying to make the boss happy” to a spirit of teamwork, goal-setting, and accomplishment.

A “we” mentality allows for the accountability and community that is essential in the modern day workplace.

3. Leaders develop and invest in people; bosses use people.

Unfortunately, many office climates involve people using others to get what they want or to climb the corporate ladder. This is another example of the “me first” mentality that is so toxic in both office environments and personal relationships.

Instead of using others or focusing on your needs, think about how you can help other people grow.

Use your building blocks of compassion and team-mentality to stay attuned to the needs of others note the areas in which you can help them develop. A great leader wants to see his or her people flourish.

Make a list of ways you can invest in your team members to help them develop personally and professionally, and then take action!

4. Leaders respect people; bosses are fear-mongering.

Earning respect from everyone on your team will take time and commitment, but the rewards are worth every ounce of effort.

A boss who is a poor leader may try to control the office through fear and bully-like behavior. Employees who are petrified about their performance or who feel overwhelmed and stressed by unfair deadlines are probably working for a boss who uses a fear system instead of a respect system.

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What’s the bottom line?

Work to build respect among your team by treating everyone with fairness and kindness. Maintain a positive tone and stay reliable for those who approach you for help.

5. Leaders give credit where it’s due; bosses only take credits.

Looking for specific ways to gain respect from your colleagues and employees? There is no better place to start than with the simple act of giving credit where it is due.

Don’t be tempted to take credit for things you didn’t do, and always go above and beyond to generously acknowledge those who worked on a project and performed well.

You might be wondering how you can get started:

  • Begin by simply noticing which team member contributes what during your next project at work.
  • If possible, make mental notes. Remember that these notes should not be about ways in which team members are failing, but about ways in which they are excelling.
  • Depending on your leadership style, let people know how well they are doing either in private one-on-one meetings or in a group setting. Be honest and generous in your communication about a person’s performance.

6. Leaders see delegation as their best friend; bosses see it as an enemy.

If delegation is a leader’s best friend, then micromanagement is the enemy.

Delegation equates to trust and micromanagement equates to distrust. Nothing is more frustrating for an employee than feeling that his or her every movement is being critically observed.

Encourage trust in your office by delegating important tasks and acknowledging that your people are capable, smart individuals who can succeed!

Delegation is a great way to cash in on the positive benefits of a psychological phenomenon called a self-fulfilling prophecy. In a self-fulfilling prophecy, a person’s expectations of another person can cause the expectations to be fulfilled.[2]

In other words, if you truly believe that your team member can handle a project or task, he or she is more likely to deliver.

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Learn how to delegate in my other article:

How to Delegate Work (the Definitive Guide for Successful Leaders)

7. Leaders work hard; bosses let others do the work.

Delegation is not an excuse to get out of hard work. Instead of telling people to go accomplish the hardest work alone, make it clear that you are willing to pitch in and help with the hardest work of all when the need arises.

Here’s the deal:

Showing others that you work hard sets the tone for your whole team and will spur them on to greatness.

The next time you catch yourself telling someone to “go”, a.k.a accomplish a difficult task alone, change your phrasing to “let’s go”, showing that you are totally willing to help and support.

8. Leaders think long-term; bosses think short-term.

A leader who only utilizes short-term thinking is someone who cannot be prepared or organized for the future. Your colleagues or staff members need to know that they can trust you to have a handle on things not just this week, but next month or even next year.

Display your long-term thinking skills in group talks and meetings by sharing long-term hopes or concerns. Create plans for possible scenarios and be prepared for emergencies.

For example, if you know that you are losing someone on your team in a few months, be prepared to share a clear plan of how you and the remaining team members can best handle the change and workload until someone new is hired.

9. Leaders are like your colleagues; bosses are just bosses.

Another word for colleague is collaborator. Make sure your team knows that you are “one of them” and that you want to collaborate or work side by side.

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Not getting involved in the going ons of the office is a mistake because you will miss out on development and connection opportunities.

As our regular readers know, I love to remind people of the importance of building routines into each day. Create a routine that encourages you to leave your isolated office and collaborate with others. Spark healthy habits that benefit both you and your co-workers.

10. Leaders put people first; bosses put results first.

Bosses without crucial leadership training may focus on process and results instead of people. They may stick to a pre-set systems playbook even when employees voice new ideas or concerns.

Ignoring people’s opinions for the sake of company tradition like this is never truly beneficial to an organization.

Here’s what I mean by process over people:

Some organizations focus on proper structures or systems as their greatest assets instead of people. I believe that people lend real value to an organization, and that focusing on the development of people is a key ingredient for success in leadership.

Learning to be a leader is an ongoing adventure.

This list of differences makes it clear that, unlike an ordinary boss, a leader is able to be compassionate, inclusive, generous, and hard-working for the good of the team.

Instead of being a stereotypical scary or micromanaging-obsessed boss, a quality leader is able to establish an atmosphere of respect and collaboration.

Whether you are new to your work environment or a seasoned administrator, these leadership traits will help you get a jump start so that you can excel as a leader and positively impact the people around you.

For more inspiration and guidance, you can even start keeping tabs on some of the world’s top leadership experts. With an adventurous and positive attitude, anyone can learn good leadership.

Featured photo credit: Unsplash via unsplash.com

Reference

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