How to Protect Your Assets for Healthcare providers (physicians and dentists)?
Healthcare providers, including physicians and dentists, have available a legal process known as asset protection. Where a person or company organizes their assets to shield them from judgment collection. Florida is a safe haven as compared to most other states. Florida asset protection employs legal strategies to protect a variety of assets, including assets such as real estate, bank accounts, investments, and corporations, making it more challenging for judgment creditors to seize such assets. Florida allows for effective asset protection both before and after a lawsuit is filed. At different stages of life there is a different level of need and complexity for asset protection:
What level of Asset Protection do I need?
There are various stages in a professional's life cycle that involve different levels of planning and protection. In the life cycle of a professional there are different stages that require a different level of planning and protection.
Young Professionals - For the young professional in the basic asset accumulation phase, it is important to understand what assets are protected assets and what naming nomenclature to use to hold exposed assets in. The basic accumulation stage is where a person is earning a regular paycheck and is gathering the basic necessities of life like: one (1) home, two (2) cars, a basic 401K or IRA, and typically having young kids. For the first stage, the person needs to understand the basic blocking and tackling, like: (a) protecting your earning ability or license and to move employers and careers, (b) understanding how asset naming conventions and nomenclature works so you can do basic asset protection on your own, and (c) getting a basic will setup, so in the event of death, your family will get what you own.
Mid-Level Professionals - In the middle stage of life is when accumulation of wealth occurs and the assets start to go beyond the basics of life's necessities, like: more than one home, more than one rental property, a running business or practice, basic retirement investments, life insurance policy, one or more investment accounts, and children's education funds. In the second stage of life, it becomes even more important to use all the techniques young professionals use and add to it by: (a) have a will & testament setup, (b) organize your business and investments in different corporate vehicles, (c) insuring your risks appropriately, (d) using the leverage of a bank, and (e) to intentionally mortgage those assets that are most at risk of creditors by using intra-company loans so that the real wealth or equity is held in your safest asset.
Wealthy Professionals - In the third stage of life, it includes not just protection of assets, but also how to transfer your wealth to your children and loved ones. This is when the assets start to reach debt free status, the wealth is above the IRS minimum tax-free inheritance transfer of $12 million (in 2022), and there are multiple interests in play among partners, family members and others. This stage requires: (a) updating your will, (b) ensuring that the companies are held in trusts or family trusts and family limited partnerships, (c) using intercompany and intracompany transfer's and management agreements, and mortgages to ward off creditors.
Super Wealthy - In the fourth stage of life, is the stage of the real wealthy individuals and families. It typically starts when the assets reach above $30+ million, and the needs then are entirely different. This class of individuals is highly sought after by investment advisors and creditors. It is not just about asset protection but about tax free transfer of wealth between family and loved ones, but also paying back and improving community and societies by setting up scholarships, endowments, non-for-profit contributions, etc. This stage requires: (a) updating your will, (b) ensuring that the companies are held in trusts or family trusts and family limited partnerships, (c) using intercompany and intracompany transfer's and management agreements, and mortgages, (d) multi-layering the domestic and off-shore companies and trusts to make it more to add further protection, (e) setting up and paying back the community with the excess of wealth that you and your loved ones will possibly never need. All together this amounts to asset protection that wards of creditors.
At any stage of your career, you will need certain asset protection knowledge and techniques, for which seeking legal counsel is crucial. Not just someone who understands the law but also the financial mechanisms in play that help facilitate of generation, protection, and transfer or wealth; an attorney–accountant combination is the preferred choice of selecting a professional.
Call Ben Assad Mirza at Cell/Text 954-445-5503 or email [email protected] He is an attorney and a former CPA. All initial consultations are free of charge.