Asset Protection Planning
is proactive legal action that protects your assets from threats such as creditors, divorce, lawsuits and judgments. Call now to let our attorneys help you.
One of the greatest challenges facing physicians today has nothing to do with their skills or competence as professionals. Increasingly, medical doctors have had to deal with protecting their assets from malpractice lawsuits and predatory claims. As society in general becomes more litigious, this unfortunate situation will only continue to escalate. Asset protection for physicians, dentists and other medical professionals becomes ever-important as the litigation risk increases with each patient you see.
How then do you, as an industrious, well-trained medical doctor or dentist, protect yourself? What do you do to you secure your hard-earned assets from unscrupulous patients? How do you shield yourself when heartless lawyers file frivolous claims?
Some physicians think that a malpractice insurance policy is an effective line of defense potential lawsuits. Think again. As you will see below, there are many reasons why they won’t be there when you need them the most. Premium costs tend to increase much faster than the rate of inflation. They are especially high within the surgery and OB/GYN specialties. Then, with increasing pressure from health insurance to decrease patient fees, many physicians feel financially squeezed at both ends.
We are not saying that you should not have a policy. You should. And don’t let the high cost of malpractice insurance prevent you from getting one. A single successful claim, whether it is warranted or not, can wipe out your entire practice. The good news is that you may not need one with all the bells and whistles early in your career. But do make sure you have malpractice insurance in place well before you hang your shingle outside your office door.
Additionally, make sure you update your malpractice insurance regularly. You’re more likely to be a target of predatory claims as your practice expands and you get more clients. To begin with, physicians are already often viewed as ‘deep-pocket’ targets by greedy claimants. The more successful you are, the greater the odds of someone suing you. Your medical malpractice insurance coverage must grow with your practice.
That said, having malpractice insurance is just one step in protecting your assets from lawsuits. In fact, having only malpractice insurance, with no other asset protection in place, can put you at higher risk for lawsuits. Devious claimants know when they sue a doctor and win, it’s the insurance company that settles the claim. Of course, a lost claim ultimately results in higher premiums for the physician. But that is not their concern. They simply take their ‘winnings,’ pay off their contingent fee lawyer  and scout around for their next victim. This is why you must include targeted asset protection strategies in your defense against such plaintiffs.
Here is why:
The fraud claim does not actually need to be valid. They just need to convince a judge and/or jury that it is. One common fraud claim is where a physician performs a procedure. Then an expert witness takes the stand claiming the procedure was not needed. They claim that the physician recommended it to line his own pockets. Insurance does not generally cover fraud.
Plans that provide asset protection for physicians should involve proper tools to protect the assets in question. Does the professional need protection for liquid assets? Then an asset protection trust is in order. What about protecting real estate assets? One should put an equity stripping plan into play.
The bottom line is to take action right away. Those who erect their asset protection fortresses early in the game will put the odds in their favor over those who ponder. Take action as soon as possible. Physicians can typically write off their asset protection plans and take tax deductions. Establishing such plans can give the medical professional peace of mind as well as long-term financial security.
If you need asset protection you can call the number on this page or complete the free inquiry form above.