What is asset protection and why do I need it?
Asset protection is a process by which a business tries to isolate assets from the potential claims of creditors. Over the years, our society has evolved from a caveat emptor (buyer beware) model to a fiduciary (its not my fault) model. We have become very litigious, which leaves many businesses vulnerable. For example, a few years ago, a fast-food customer ordered coffee at a drive-through window and then spilled coffee on herself and was burned. She sued and was awarded approximately $2 million in damages. McDonalds could afford the damages, but if something like this happened to your business, would you be able to survive? In short, we try to protect business assets from creditor claims.
Asset protection is a process by which a business tries to isolate assets from the potential claims of creditors. Over the years, our society has evolved from a caveat emptor (buyer beware) model to a fiduciary (“it’s not my fault”) model. We have become very litigious, which leaves many businesses vulnerable. For example, a few years ago, a fast-food customer ordered coffee at a drive-through window and then spilled coffee on herself and was burned. She sued and was awarded approximately $2 million in damages. McDonald’s could afford the damages, but if something like this happened to your business, would you be able to survive? In short, we try to protect business assets from creditor claims.
