Asset Protection Planning for Vulnerable Professionals

By: Matthew E. Rappaport, Esq., LL.M.

America is the most litigious society in the world, and few thoughts strike more fear into the hearts of ordinary people than a protracted lawsuit and—even worse—enforcement of a monetary judgment. Outside of the nation’s capital, New York is home to the most lawyers per capita, so the dangers of litigation loom larger in that state than almost anywhere else.

Professionals are in an especially vulnerable position because New York law prohibits them from using an entity to shield liability for their own malpractice. This policy makes accountants, lawyers, doctors, architects, engineers, and other licensed practitioners prime targets for plaintiffs’ counsel. One wrong move could spell liability in excess of insurance limits, leading to seizure of personal assets and future income.

With this existential peril looming over their heads, what should professionals do to protect themselves? This article describes some strategies that can help and considerations when implementing them.

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http://www.nysscpa.org/news/publications/the-tax-stringer/stringer-article-for-authors/asset-protection-planning-for-vulnerable-professionals

DISCLAIMER: This summary is not legal advice and does not create any attorney-client relationship. This summary does not provide a definitive legal opinion for any factual situation. Before the firm can provide legal advice or opinion to any person or entity, the specific facts at issue must be reviewed by the firm. Before an attorney-client relationship is formed, the firm must have a signed engagement letter with a client setting forth the Firm’s scope and terms of representation. The information contained herein is based upon the law at the time of publication.