Asset Protection Planning for Professionals and Business Owners in Rhode Island & Massachusetts
Serving Clients in Rhode Island & Massachusetts
Asset protection planning is about making smart decisions today to safeguard yourself, your business, and your hard-earned assets from potential loss due to lawsuits, creditors, or bankruptcies. It is especially important for professionals and business owners, whose personal and digital assets may be more exposed because of the nature of their work.
Divorces, lawsuits, and bankruptcies are more common than most people anticipate. Even wealth built over a lifetime through work, saving, and investing can be at risk if these events occur. To protect your assets, it is essential to consider comprehensive risk management strategies, including shielding assets from creditor claims, limiting liability through legal entities, and transferring risk through insurance.
Protect Your Assets, Limit Your Risk, and Secure Your Legacy
Exempting Assets in Rhode Island & Massachusetts
State and federal laws protect certain assets from creditor claims. In some states, you may choose between state and federal exemptions, while in others, only state exemptions apply—federal bankruptcy exemptions may not be available.
Once you’ve identified the asset classes protected under the law, it may be prudent to maximize protection by converting non-exempt assets into exempt assets whenever possible.
Limiting Liability for Professionals & Business Owners
Many entrepreneurs operate as sole proprietors rather than through legal entities such as corporations or limited liability companies. Sole proprietorships offer informality and lower upfront costs, but they also expose the owner’s personal assets to liability.
In contrast, a properly created and maintained legal entity generally limits liability to the entity’s assets, protecting personal wealth. Choosing the right legal entity is critical for effective risk management and overall asset protection.
Transferring Risk with Insurance
When was the last time you reviewed your liability insurance coverage? Are your policies current, with adequate limits and reasonable deductibles? Have you examined them for potential gaps or loopholes?
The goal of insurance is simple: pay a premium you can afford to transfer risks you cannot. As part of asset protection planning, it is essential to understand which risks you retain and which you transfer through insurance coverage.
If you are a business owner or professional in Rhode Island or Massachusetts looking to implement an asset protection plan, contact Lambros Law Office. Attorney Nicholas Lambros can help you create a plan to safeguard your business, your assets, and your family.