Keep Your Assets Safe From Lawsuits

An employee steps out to get lunch for the company and gets into a car accident. Would you believe that his employer is liable? With the country enduring a trigger-happy approach to lawsuits, scenarios such as this one can have devastating effects, including a damaged reputation and loss of assets, G. Kent Mangelson, CFP of the American Society for Asset Protection, shared some protection strategies during an education session yesterday morning.

 The presentation focused primarily on limited partnerships, which allow individuals to protect personal finances (CDs, savings), real estate and homes. The key to protection is to avoid mixing safe assets (the money) with the high liability assets (properties), Mangelson said. The latter trigger lawsuits, and mixing the two strip your protection on those high liability assets.

Magnelson also discussed a concept called a charging order. This was described as the only course of action a judge would ever sentence when he sees a person’s assets were properly distributed. It is seen as not a viable option for the person filing the lawsuit because they cannot get any percentage of an individual’s assets or income. It is only seen as an option to go after an insurance company.

For more information on Magnelson and his association, visit www.americansocietyap.org