Asset Protection

If you are in business, or purchasing investment real estate, you may wish to take another form of ownership for reasons of asset protection and limited liability.

You may protect your personal assets from claims by placing their real property in a Limited Liability Corporation, a Business Corporation, or a Trust.

For example, suppose you own a restaurant and somebody is injured on the premises. Having this property in an LLC before you become aware of the problem will limit the collectibility of the claim to only the assets in the LLC.

The manner in which you take title is dependent upon your needs and what you propose to do with the property.  If  you believe your insurance coverage could be inadequate to protect you, then you may wish to lock into these forms of ownership.

Most real estate is held by individuals and their spouses.  Deeds to personally help property are generally taken in one of two different ways; as Joint Tenants or as Tenants in Common.  Joint tenants have a right of survivorship with their co-owner (usually a spouse), whereas property held by tenants in common do not.

Copyright 2007 Real Pro, Inc.