Protecting your assets is more vital than ever, especially when you own risky assets that could expose you to greater liabilities. In Tampa, Florida, asset protection attorneys play a crucial role in helping individuals safeguard their wealth against lawsuits, creditors, and unexpected events.
An asset protection attorney in Tampa explains more about the nature of risky assets and the strategies available for protecting them, which can help ensure your financial stability and peace of mind.
Identifying Risky Assets
Risky assets, also sometimes called idiosyncratic risks, are those that can lead to significant financial loss or liability exposure due to their potential for accidents, legal claims, or depreciation. Here are some common examples of risky assets:
Airplanes | Asset Protection Attorney in Tampa
While owning a private aircraft can be a symbol of luxury and convenience, it also comes with considerable risk. Do you provide a service-for-hire or offer rides on a privately-owned aircraft? Accidents can lead to catastrophic injuries and costly lawsuits.
Helicopters
Similar to airplanes, helicopters are subject to strict regulations and high risks. Helicopter rides are popular in tourist areas or for personal convenience. The risk associated with flying, along with the potential for accidents during takeoff, landing, or taxiing, raises concerns about liability.
Boats
Whether it’s a yacht or a smaller recreational vessel, boating comes with inherent risks. Do you frequently invite guests along on cruises or day trips? The potential for accidents on the water is higher than many anticipate, leading to personal injury claims, property damage, and environmental concerns.
Luxury Vehicles | Asset Protection Attorney in Tampa
High-performance cars can be thrilling to drive, and offering paid rides is a niche tourist attraction. Still, they often come with higher liability risks due to their speed and the inherent tendency for accidents. A privately owned racecar can be a boon if you offer rides to friends.
Specialty Structures
Airplane hangars, racecar garages, boat sheds, and other specialty buildings can also pose higher risks for visitors or trespassers. Accidents in or around these structures could leave you liable and all your assets at risk.
Recognizing these risky assets is the first step in ensuring they’re effectively protected.
Recommended Asset Protection Strategies
An asset protection attorney in Tampa from Mortellaro Law can guide you through various strategies designed to shield your assets from potential liabilities. Here are some asset protection methods that work well for risky assets:
Holding Company
A holding company is a legal entity that owns other companies’ assets for asset protection. Transferring risky assets into it shields them from personal liability and creditor claims. If the operating company faces legal or financial issues, holdings remain protected. It also helps manage assets and offers tax benefits, enhancing financial stability.
Florida LLCs | Asset Protection Attorney in Tampa
Florida LLCs are popular for asset protection due to their legal structure and liability protection. They separate personal assets from business liabilities, shielding personal wealth from LLC debts or legal claims. If the LLC faces a lawsuit or financial issues, only LLC assets are at risk. They are effective for managing and protecting high-risk assets.
Land Trusts
Land trusts protect assets by holding property in a trust, ensuring privacy since the trust’s name appears on public records instead of the owner, deterring claims. They also separate personal estate from properties, making it harder for creditors to access assets during lawsuits or financial judgments. Overall, land trusts effectively safeguard properties while maintaining control.
Umbrella Insurance Policies
An umbrella insurance policy is a type of liability insurance that provides additional coverage above and beyond the limits of your basic home, auto, or boat insurance. This policy takes effect when you reach your limit on the primary policies, providing additional protection for potential claims related to your high-risk assets.
Asset Separation | Asset Protection Attorney in Tampa
Another strategy is to separate your risky assets into different legal entities. This can limit exposure by ensuring that if one entity faces a lawsuit, the assets held in other entities remain unaffected. For instance, owning multiple properties or vehicles in separate LLCs can minimize risk.
How Can an Asset Protection Attorney in Tampa Help Me with These Strategies?
Michelangelo Mortellaro is a trusted asset protection attorney in Tampa who can help shield clients from liability associated with risky assets. His expertise lies in employing legal strategies that protect your money and property without resorting to illegal methods such as concealment or fraudulent transfers.
What sets Michelangelo apart is his commitment to finding legitimate ways to safeguard both personal and business assets. He takes the time to explain the various options available based on your specific situation, ensuring you understand how to legally protect your wealth while remaining compliant with the law.
Using a variety of techniques, he effectively removes your assets from the reach of creditors and litigators. With Michelangelo Mortellaro as your asset protection attorney, you can have peace of mind knowing that you’re taking proactive steps to manage your liabilities and secure your financial future.
For example, in a recent client’s case where he privately owned an airplane and hangar, we set up a Wyoming holding company to own the Florida LLC that owns the actual aircraft. The hangar is now in a Florida land trust that is assigned to his revocable living trust. All this property is also shielded from probate in a living trust.
Risky Asset Protection Strategies FAQ
What types of assets can be protected?
Most assets can be protected, but the approach may vary depending on the specific circumstances. Commonly protected assets include real estate, vehicles, bank accounts, and investments. However, the protection methods depend on the asset’s value and risk level.
Are trusts and LLCs the only way to protect assets?
No, while trusts and LLCs are popular methods, they are not the only options. Umbrella insurance policies, proper risk management, and asset separation are also effective strategies for mitigating risk.
How often should I review my asset protection plan?
It’s crucial to review your asset protection plan regularly, especially if you acquire new assets, experience changes in your financial status, or if there are relevant changes in legal or tax laws.
Can I set up an asset protection plan on my own?
While you can attempt to set up a plan independently, consulting an experienced asset protection attorney is recommended. They can ensure compliance with laws and maximize protection strategies tailored to your needs.
Is asset protection legal?
Yes, asset protection is a legal and widely accepted strategy in financial planning. However, attempting to conceal assets after a liability has arisen is considered fraudulent and illegal.
Contact a Risky Asset Protection Attorney in Tampa
Owning risky assets can be rewarding, but it also comes with unique challenges and potential liabilities. An asset protection attorney in Tampa can help you navigate these complexities to develop a comprehensive strategy tailored to your specific needs. By understanding your assets and utilizing effective protection methods, you can significantly reduce your risk and safeguard your financial future.
Contact Mortellaro Law if you privately own an airplane, helicopter, pleasure watercraft, high-performance sports car, racecar, or other type of asset with inherently high liability risks. We can help you protect your wealth and your future.
