Physicians’ wise moves to protect their assets and investments
Physicians are always at risk of being sued. Sadly, many of them have already dealt with lawsuits, and they know how frustrating and time-consuming they can be. Asset protection strategies are needed to ensure the medical professional’s personal assets aren’t at risk if a suit is successful. Every physician needs to learn how to keep their personal and professional lives separate in this respect.
A lawsuit is a small part of life
When a physician is sued, they may feel the case impacts every aspect of their life. With asset protection for physicians, it doesn’t have to. They can go about their tasks as if the suit never happened. The suit isn’t a personal attack on the physician; they must remember this.
Plaintiffs have an advantage in these cases because the attorney only gets paid if they win. They receive a percentage of the settlement. The plaintiff has nothing to lose.
Physicians must pay their defense attorneys whether they settle or go to court. The outcome of any court case is hard to predict, and most doctors don’t know how lawsuits proceed or what to expect. All they know is they are facing a lawsuit, and their assets may be taken if the plaintiff is successful.
Attorneys won’t take a plaintiff’s case unless they think they can win because they want to get paid. They gather information about the individuals being sued to determine if the case is worth their time. That’s why every physician needs asset protection strategies in place.
The benefits of asset protection strategies
Doctors do their best to treat patients, but the outcomes are not always what they desire. A patient’s loved ones might choose to sue when things don’t go their way, even when the doctor did everything possible to provide the desired outcome. Asset protection strategies protect them in these situations.
Asset protect strategies for physicians
Laws change, and asset protection strategies must change with them. Physicians should always consult with attorneys or accountants to ensure their assets are safeguarded if someone chooses to sue them. However, every physician should use the following strategies.
Malpractice insurance is helpful, but a physician needs other insurance. Car and home insurance are essential, and many doctors purchase umbrella insurance to safeguard their assets without spending a fortune. Employer-sponsored retirement accounts are protected from lawsuits, unlike personal IRAs. A plaintiff might go after the personal IRA if they win the suit, and these accounts vary in terms of their protection.
Another option involves investing in annuities. While they vary in the protection they offer, the money cannot be obtained until the physician retires. An attorney may not want to wait that long.
A trust may not be the best option, although many physicians believe it is. They don’t offer much protection, and the physician must turn over all control over the funds placed in the trust. Many doctors aren’t comfortable with doing so.
The best thing a physician can do to protect their assets is to hire an excellent team of professionals trained in safeguarding the funds of others. An experienced financial advisor recognizes the challenges physicians face, which extend beyond malpractice suits. The physician may also manage a medical practice, which is a complex undertaking. The advisor will review all available asset protection strategies to determine those that will benefit the physician most and offer the highest level of protection.
