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ASSET MANAGEMENT EXAMPLES Sheltering assets today is for everyone. Living in a litigious society, with Plaintiff Attorney’s utilizing every creative loophole in the law to collect whatever they can from someone else for whatever may happen in life, is the way life is today. Today Business Owners and Licensed Professionals are going BARE, or as it is known Self-Insuring, because of rates or the non-availability of any insurance. This means that the Business Owners or Licensed Professionals, rather than an insurance company, answering any lawsuit, the responsible party for all legal fees and any judgment or settlement if a lawsuit is filed is the party being sued. By example, in Miami-Dade Country in South Florida, nearly 20% of the Counties 6,360 active medical doctors are bare. They have no insurance. As Self Insurance becomes more of a common practice among licensed professionals and high-risk target Business Owners, SHELTERING ASSETS with sophisticated trusts and out-of-state Corporate structures, safely out of reach for legal judgment down the road, is what must take place. By example, in Arkansas for instance, more than 100 Nursing Homes, out of a total of 237 in the state, had no liability insurance as of June 2004, according to the Arkansas Health Care Association. What happens when a presumed injured party sues a Business Owner or Licensed Professional without insurance? The injured party often settles for less and does so before the party sued claims bankruptcy. Asset protection advisors recommend clients to first hire a bankruptcy attorney rather than a defense attorney, if they are sued. What plaintiff attorneys fear most is a lawsuit in bankruptcy. In one example, a Florida Doctor was sued that was not insured and the same day the jury awarded nearly $4.0 million the Doctor filed for Chapter 7 bankruptcy. While the Doctor had nearly $3.8 million in assets, his money was held in his house, retirement accounts and other protected assets, which are exempt from creditors under Florida law. The case reach the FLORIDA Supreme Court, which ruled in favor of the Doctor that even the annuities he had purchased also were protected under Florida law. Ultimately the $4 million judgment was discharged, meaning that the Doctor was off the hook. The claimant received nothing.
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