Many legal issues can arise regarding businesses and estates, but protecting your assets and ensuring that they are passed on as you intended is important. To protect your estate from lawsuits, you must be proactive. Read on and consult with a Sussex County estate litigation lawyer for skilled advice and representation.

How to Protect My Estate from Lawsuits

While there are many ways to protect your estate and assets during a lawsuit, the following are some of the most notable.

  1. Set up a trust: A trust is a powerful tool that can benefit individuals trying to plan their estate. A standard will becomes public when the owner passes away and is subject to probate court, where the terms of the will can be disputed or overruled. A living trust, however, allows assets to avoid probate and be transferred to beneficiaries privately. Because a trust’s assets are not displayed publicly like a will’s, the process can prevent lawsuits and protect your assets.
  2. Use Limited Liability Companies: LLCs provide protection by housing the assets of a business. By using an LLC, you can prevent your personal assets from being seized by creditors or being subjected to a lawsuit.
  3. Buy insurance: Having adequate insurance for your assets and business is your first line of defense against lawsuits. Work with an insurance professional to ensure you have plenty of coverage for your various assets and properties. Review your policies regularly to ensure they continue to meet your needs.
  4. Diversify your assets: When all of your properties and assets are owned under one name or one company, it can create a serious problem if a lawsuit is filed. Just one lawsuit could put your entire estate in jeopardy. Create separate entities and spread your wealth across various investments to reduce the risk of losing everything if a lawsuit is filed against you. This can include multiple companies, stocks, bonds, real estate, etc.
  5. Update your estate plan regularly: Laws can change over time, as can your personal circumstances. Regularly reviewing and updating your estate plan is essential to ensure that it continues to protect your assets. You may wish to occasionally change beneficiaries, revise the terms of your trust, move assets under different entities, etc. Updating your information allows you, your beneficiaries, and your attorney to be prepared for a lawsuit or any issues that may arise.

The best way to protect yourself and your estate is by being educated on your options and the potential dangers of a lawsuit. Consult various professionals like financial advisors, estate planning attorneys, and tax professionals for help developing a strong estate plan that will protect your assets.

It is also important to educate your beneficiaries and business partners about your estate plan and the legalities behind certain actions and decisions to ensure that your legacy will stand the test of time. Reach out to a skilled estate planning lawyer at Laddey Clark & Ryan, LLP to set up a consultation today.