While everyone needs Asset Protection, doctors especially vulnerable due
to the nature of their profession. Creating an Asset Protection plan catered
to your medical career will protect not only yourself, but your practice
as well. Knowing the risks to doctors and the mistakes to avoid is the
Doctors are a common lawsuit target. The average doctor is perceived to
be wealthy which makes them a higher risk target. Even if you are not
liable, a lawsuit can cost you tens of thousands of dollars, even if you
win. In 2018, the American Medical Association reported that 1 in 3 doctors
have been named in at least one lawsuit. Setting up your plan before a
lawsuit happens will save you time, effort, and money.
As a doctor, you face personal risks from your occupation. Not only can
your practice be sued, but you can be sued individually. A personal judgement
can financially wipe you out. Your practice can be sued simultaneously.
Thus, putting your business and your partners at risk. With a well-structured
Asset Protection plan, you’ll be in a better position to negotiate
For doctors, liability insurance is not a 100% guarantee. Medical Malpractice
is important, but it does not provide enough protection; not to mention
its costly price point. It is certainly a great first step, but you want
belt and suspender. The majority of lawsuits are not fully covered by
insurance. Or, what if your insurance coverage is inadequate. Your insurance
company may go bankrupt, leaving you to pick up the pieces. Insurance
also does not cover other uninsured financial risks and divorce.
Here are five mistakes to avoid for doctors seeking Asset Protection:
Do not hide your assets. You NEVER want to hide your assets. Asset Protection focuses on titling
your assets appropriately to offer you the best possible protection. Hiding
your assets will only cause problems down the road. You should be able
to tell anyone where your assets are, yet they should not be able to reach them.
Do not title your assets to “straws.”If you simply title your assets to your friend or a family member (“straws”),
your assets are still vulnerable. Whoever you title your assets to can
still be sued and your assets can be lost in the process.
Do not title assets to your spouse.Simply because a spouse is not a doctor does not mean they have less liability.
Your spouse can be sued over anything at any time. For example, your spouse
can get into a car accident and be sued. If you title your assets to your
spouse, your assets are at risk.
Do not commit fraudulent transfers.This occurs when you transfer assets out of your name for less than fair
market value after you have a present or potential lawsuit. As a result,
the creditor doesn’t get paid.
Do not break any laws.Whether your assets are held domestically or internationally, always follow
the proper reporting requirements. Withholding information from the treasury
department or the IRS has serious consequences. Make sure everything you
do is ethical and legal. Asset Protection utilizes ethical and legal strategies
to protect yourself from inevitable financial threats.
To learn more about Asset Protection for doctors, read our blog about strategies
to protect doctor’s assets:(https://www.assetprotectionattorneys.com/Asset_Protection_Blog/2019/September/Asset_Protection_for_Doctors.aspx)
For more information on Asset Protection, contact The Presser Law Firm,
P.A. for a complimentary preliminary consultation.
The Presser Law Firm, P.A.
6199 N. Federal Highway, nationwide FL 33487
(561) 953-1050 or e-mail