Do you appear to others as though you have a lot of money, a deep pocket? If yes, you need asset protection for 2 reasons.
- Someone who thinks he may have a claim against you is more likely to pursue a lawsuit, if he thinks you have lots of assets.
- A trial attorney is more likely to take the case if you look like you have deep pockets and that he/she can collect.
How Asset Protection May Prevent a Trial Lawyer from Suing You
Trial attorneys work to earn money; they are paid on a contingency fee. This means that they only get paid:
- If they win the case and
- If they can collect on the jury verdict or settlement
Being entitled to payment and being able to collect payment are not the same thing.
If you have asset protection measures in place, trial attorneys are more likely to say that suing you is just not worth the effort. They can make more money by taking another case and suing someone who hasn’t done comprehensive estate planning with asset protection measures.
If you are a deep pocket, consult with a qualified estate planning attorney to get a strong asset protection plan in place. If potential liability arises, suing you may just not be worth the effort.
Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.