One Car Accident Can Destroy Family Wealth
Posted on Fri, Feb 10, 2006
Many Californians are underinsured. Minimum limits on auto policies of $15,000 and $50,000 will not cover significant accidents. Even with maximum coverage, a car accident can completely wipe out a family's resources. Two verdicts reported in this month's California Bar Journal:
- Verdict to pedestrian struck by vehicle, causing serious leg injuries: $2,200,000
- Verdict for "chain-reaction freeway accident" that caused neck and back injuries in plaintiff: $2,916,712
Depending upon the cause of the accident, auto insurance may not even have covered the defendants in these cases. What's worse, in the chain-reaction accident, a driver who was only 1% at fault can be forced to pay the entire $3 million verdict if he or she is the one with money.
For some strategies to consider, continue reading. ClientCare members, look for your special benefit!
Steps to Take Now to Protect Your Assets:
- Choose the maximum limits on your auto and homeowners' insurance.
- Sit down with an experienced insurance agent to set the right level of business insurance, whether or not you have a corporation.
- Buy a Personal Umbrella Insurance Policy with a limit at least equal to your net worth.
- Place non-personal use assets (not your house or car, things like your investment account and rental properties) into an Asset Protection Vehicle like a Wyoming Closely Held Limited Liability Company, an Alaska Asset Protection Trust or a Delaware Series Limited Liability Company.
I invite members of our firm's ClientCare program to call for an Asset Protection Audit, a benefit of your membership in the ClientCare program.
Anna Spektor, our firm's new Director of Community Relations would be delighted to chat with others about the Asset Protection Audit and discounted fees available to firm clients at (805) 778-0600.