Wallstone Services
Asset Protection Strategies

The threat of financial ruin can arise from many sources. The list of threats is seemingly endless, limited only by the creativity of a paintiff's attorney or the zeal of a governmental agency. Following are some of the more common sources:

Business Liability Exposures

Current or Former Employees • Discrimination • Unlawful Discharge • Sexual Harassment • Disability / ADA • Civil Rights Infringement Government • Environmental Damages • Other Regulatory Claims		Customers or Clients • Product Liability • Professional Malpractice • Breach of Contract • Negligence Actions of Others • Employees • Authorized Agents • Independent Contractors • Officers and Directors

Personal Liability Exposures

• Automobile Accidents • Household Accidents • Assault and Battery		• Defamation / Slander • Professional Malpractice • Personal Guarantees

Traditionally, insurance and incorporation have largely been used to hedge against such threats. In our current legal environment however, both are of limited benefit. Incorporation does not protect assets within the company and the corporate shield for personal assets seems to be losing its strength as judges are now inclined to entertain a variety of questionable legal arguments.

The role of insurance, while still used as a first line of defense, is diminishing for a number of reasons:

• Coverage Limits • Liberal Exclusions • Prohibitive Cost		• Inability to Obtain • Uninsurable Risks • Failure of Insurance Companies

Accordingly, special strategies, techniques and mechanisms are needed as a supplement to insurance to bring more of your business and personal assets under the protection umbrella. Examples include the use of:

• Family Limited Partnerships • Other Limited Liability Entities • Trusts		• Special Forms of Property Ownership • Exemption Statutes

Fortunately, the law still provides a number of means for protecting a large portion of your property. However, the law can also nullify such protections if implemented too closely in time to a claimant’s action. Therefore, it is more important than ever to put protective mechanisms in place well before a major legal or financial threat arises. Because many of these threats tend to strike when you least expect, we should arrange to meet soon to explain the alternatives available to you.

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