Law suit protection:

A year ago I attended a workshop on business. Here are some of the things I learned about law suite protection.

– Lawyers, except case, if contingent on winning, which means that they get around 40% of the earnings. To defend themselves, corporations pay hundreds of dollars an hour to a lawyer to defend the business. Lawyers will do an asset search. There are websites that will offer this service. For example, Zillo.com, gives values of the work of a home.
– When someone does an asset search on your name you want to look broke it will discourage them from pursuing a lawsuit.
– Types of suits:
– divorce,
– Employee action: homeowners insurance policy will only pay up to the coverage limit such as 300k
– Joint ownership pitfalls.
– When someone uses a general partnership, both the liable for suing.
– Individuals that help with the paperwork can be seen as corporate officers or implied officer
– Owning an asset that hurt somebody
– Corporations help partners become investors.
– Corporations generally protects you are personal assets.
– Close loopholes to prevent suing:
– Suits can take assets of businesses.
– Don’t own the trading account in the business. Corporations cannot protect it.
– Pierce the corporate veil: lawyers will ask for corporate minutes and paperwork.
– Offices and director are liable. If judge feels the Corporation is a sham. They were usually vote against the business if judge feels the Corporation is a sham. They were usually vote against the business.
– You can be sued because you’re the owner of an asset is dangerous. Such as if you’re the parent of a teenage driver is an accident, you can be sued.
– Insurance company may not cover you even though you paid the premiums
– Solution against lawsuits: lawsuit protection entity. Which means the only way to win against a lawsuit is not to get sued. Lawsuit protection entity discourages lawyers from pursuing the sue process.
– Wills automatically are taken to probate, and all the family’s private information is exposed publicly, which makes everyone targets for identity theft.
– A living trust can protect against probate. Create a trust by filling out the forms. This is good because all the private information of the family remains private. Having a trust will not protect you from a lawsuit. Trust only helps with probates.