LITIGATION PROBLEM AND WHY ASSET PROTECTION AND LAWSUIT PROTECTION IS CRUCIAL
In today's society, lawsuits are increasing and unfortunately, one lawsuit can destroy a person or family's financial security. The story is common and numerous, but here is a sample of why asset and lawsuit protection are critical especially to self-employed and business persons. This past week, I met with a couple that had a $1 million house and a net worth of $2 million. This client was 59 years old and the wife was 60 years old. This couple, which I will call Sam and Sue. During our visit, the stress was apparent on Sue's face. Sue is highly concerned that her and her husband will lose their $1 million home, expensive personal property, cars, and possibly their wedding rings. Sam and Sue signed a personal gurantee with a bank for a commercial loan in the amount of $6 million (Please note that I changed the names and basic facts).
In this example, Sue and Sam own their own home in their revocable living trust's names, own stock and mutual funds worth $100,000, and a vacation home in Iowa worth $200,000 with no mortgage remaining. Under Illinois law, the Sam and Sue have a right to $15,000 homestead exemption. Let's assume that Sam and Sue have a house worth $1 million with a remaining mortgage of $450,000. Under this example, Sam and Sue have $550,000 of available equity in their personal residence. First, the mortgage of $450,000 must be paid off because they have a secured interest in Sam and Sue's residence. Second, Sam and Sue get $15,000 each and the creditor gets the remaining equity minus expenses ($520,000). Unfortunately for Sam and Sue, advanced planning likely could have prevented this scenario. We are not talking about expensive advanced planning neither. Sam and Sue would lose their stocks and mutual funds in this lawsuit.
Your situation may differ with Sam and Sue's situation, but the bottom line are lawsuits destroy lives. Unfortunately, attorneys and financial advisors are most often untrained in detecting legal risks and providing solutions to these legal gaps. As an asset protection attorney, our main concentration is working with lawsuits, judgments, and risks on a daily basis. Thus, Robertson Law Group, LLC is prepared to provide you with reasonable and cost-effective solutions that will prevent your retirement from being a disaster. Sean Robertson is the Principal and Wealth Preservation Attorney for the Robertson Law Group, LLC. Sean Robertson may be reached at 312-498-6080 or 630-364-2318. Sean is also available at RobertsonLawGroup@gmail.com.
