Asset Protection for Professionals & Business Owners in Maryland

Serving Clients in Laurel, Maryland and the Surrounding Area

Asset protection planning involves making prudent decisions today to protect yourself, your business, and your hard-earned assets from loss due to lawsuits, creditors or bankruptcies. This type of legal planning is especially prudent for professionals and business owners, whose personal assets could be at risk due the nature of their employment.

Statistically and anecdotally, we all know that the number of divorces, lawsuits and bankruptcies is staggering. While no one believes lightning will strike them, wealth created through a lifetime of work, saving and investing can be lost overnight if these forms of man-made lightning do strike. To protect your assets from such disaster, proper risk management strategies should be given careful consideration. These strategies include exempting your assets from the claims of creditors, limiting your liability through legal entities, and transferring your risk through insurance.

Exempting Assets in Maryland

State and federal laws exempt some of your assets from the claims of creditors. Important to note is that while some states allow you to choose either the state or federal exemptions, in others you must use the state exemptions … and federal bankruptcy exemptions are not available.

Once you have identified the protected asset classes available to you under applicable law, it may be prudent to maximize your protection by converting non-exempt assets into exempt assets.

Limiting Liability for Professionals & Business Owners

Many entrepreneurs operate their businesses as sole proprietors rather than through a legal entity, such as a Corporation or a Limited Liability Company. Whether their business is home-based or in the Fortune 500, these business owners are attracted by the informality of sole proprietorship. They also do not want to incur legal fees to create and maintain a legal entity. However, in addition to other advantages, conducting business through a legal entity may offer substantial risk management benefits.

While lawsuits brought against a sole proprietorship are really lawsuits against the owner’s personal assets, lawsuits against a properly created and maintained legal entity are really lawsuits against the entity’s assets. Nevertheless, the selection of an appropriate legal entity is critical for managing your risk.

Transferring Risk with Insurance

When was the last time you reviewed the details of your liability insurance program with your insurance professionals? Are your policies current? Are the coverage limits adequate and are the deductibles reasonable? Have you scrutinized the policies for loopholes? Remember: the fundamental philosophy of any insurance coverage is to pay a premium you can afford to transfer a risk you cannot afford. Take time to understand both the risks you have retained and the risks you have transferred.

Testimonials

Steve Z.

Erik and Wendy were patient and thorough. Great follow up. Made sure that I considered all aspects of estate planning and provided me with peace of mine for my family when I am gone.

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Michael C.

Probate Court “It went better than expected during a year of dealing with paperwork and going to the Courthouse several times. But in the end it worked out better than I could of hoped for. Certainly Recommend to anyone who needs a Lawyer to stop by, their right beside the Post Office on Main Street in Laurel.”

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Michael M.

Fantastic!! I came very confused after my wife‘s death and in a half hour with Tom I felt like I knew what I needed to do and they have been with me every step of the way. Very pleasant, knowledge and a great help in navigating areas with which I have no experience. Thank you very much!

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Keith B.

Tom is an excellent attorney who really knows his business. He won’t guide you wrong. Our kids grew up together & I’ve known him for decades. I know him form more than just his professional work. He is a very good man and someone you can absolutely trust

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Lynn D. C.

We had the Downs Law Firm set up a trust for us years ago and recently made an appointment to review the information and make some changes. Tom was very helpful in expediting the necessary changes. The office staff was very friendly. We have been very satisfied with the Downs Law Firm. We also used Tom’s services to have a will and other necessary documents drawn up for my Dad. We would recommend the Downs Law Firm to others.

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Cynthia F.

Tom Downs has always provided our family with expert and professional estate planning advice and documents. We highly recommended him to anyone living in the State of Maryland to seek out his advice and services for their estate planning needs.

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