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In a recent interview, Michele Ungvarsky, founder at Estrada Law in Las Cruces, NM, revealed the misconceptions that leave people exposed.For more information please visit https://www.estradalawpc.com
When asked to comment, Ungvarsky said, “Unfortunately, many people often have incorrect assumptions when it comes to asset protection plans, which often leaves their hard-earned assets and wealth vulnerable, particularly if they are on the wrong end of a lawsuit.”
One commonly held belief is that asset protection plans can be set up at any time to shield assets.
When asked to elaborate, she said, “I’ve noticed that the majority of people tend to hold off on consulting with professionals to set up an asset protection plan. However, when they finally get around to it, it’s during a lawsuit, which is the worst time to begin the process.”
Ungvarsky said “That this is because specific laws prohibit the transfer of assets after a lawsuit has been filed and that the deal asset protection plan is put in place long before the mention of a lawsuit.”
Another widespread misconception is that legal entities – such as LLCs, trusts, and corporations – completely shield legal assets.
According to Ungvarsky, each legal entity comes with a set of regulations that must be strictly followed to protect assets.
When asked for an example, she said, "For instance, LLCs have strict requirements for separating personal and business expenses. If you are being sued and the other side can provide evidence that you used a business account for personal expenses such as a holiday, then your assets held in the LLC will no longer be protected.”
One of the most prevalent incorrect notions is that insurance is enough for an asset protection plan.
"Having a robust insurance plan, while necessary, does not constitute a thorough asset protection plan, which also includes legal entities and smart contracts. You'll want to ensure that your insurance plan is solid and comprehensive; however, there are weaknesses in dealing with insurance companies that won't protect you completely."
One thing to be aware of, Ungvarsky said, is exclusions in insurance contracts that place restrictions on suing companies if needed.
"Just remember that the main aim of insurance companies is to make a profit, so they will try to avoid a payout at all costs. This commonly overlooked aspect of insurance plans makes it even more important to get a robust asset protection plan," she added.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Michele Ungvarsky
Email: Send Email
Organization: Estrada Law, P.C.
Address: 1340 Picacho Hills Dr, Las Cruces, NM 88007, USA
Phone: 575-556-2462
Website: https://www.estradalawpc.com
Source URL: http://RecommendedExperts.biz
Release ID: 440228
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