Professionals Who Need a Domestic Asset Protection Trust
For some professionals, asset protection is a crucial element to estate planning. The idea that a lawsuit could cause a person to lose everything is frightening for most. If you are worried about creditors seizing your assets, then you might be interested in a domestic asset protection trust or DAPT. It is best to have a trust before you suffer any litigation.
What Is a DAP Trust?
Before you decide if you need a DAP trust, it is important to know what a DAP trust is. A domestic asset protection trust is a financial vehicle that allows you to transfer property. This property is protected against potential creditors. You can use asset protection for legal claims, for wealth management and tax benefits. A DAPT can hold cash, assets, property, life insurance policies. The assets that you secure could be business accounts or personal accounts.
Who Needs a DAP Trust?
Some professions are at a higher risk of lawsuits. If you are in a position where you are a defendant in a lawsuit, you could lose your career and your assets. The professionals involved in occupations with a high rate of litigation include:
- Medical professionals
- Financial advisors
The reason that these occupations have a higher rate of lawsuits is that these professionals handle important aspects of a person’s life. For instance, if a medical professional makes an error with a diagnosis, it can lead to serious consequences for the patient. Likewise, when a financial advisor gives advice that turns out to be inaccurate, it can cost clients a lot of money. In all these professionals, when a client’s experience is less than favorable, there is a chance of a lawsuit.
Medical professionals tend to be the most at risk of a lawsuit. Medical malpractice is serious and while most physicians have malpractice coverage, it is not always enough. Most doctors have suffered lawsuits and most of these lawsuits tend to average around $46,000. Surgeons, emergency room doctors, anesthesiologists and OB-GYNs tend to be the most heavily sued.
If you are in a career that is at risk of a lawsuit, then you need to prioritize your assets. One of the best ways to protect your assets is through an asset protection trust. Protect your wealth before there is a problem at hand. To find out more about domestic asset protection trusts, consult with an estate planning lawyer, like an estate planning lawyer from Klenk Law, as soon as possible.