Distracted Driving Tops List of Car Accident Causes, Study Finds

Being involved in Duluth Car Accident can be a frightening experience. Not only do you have to worry about potential injuries, but also medical bills and lost wages.

One of the leading causes of car accidents is driver error. From texting while driving to switching lanes too quickly, these types of actions can lead to deadly car accidents.

1. Driver Error

Car Accident

Car accidents are a part of life and can range from minor fender-benders to fatal collisions. While safety features on vehicles have improved over the years, human error is still a significant contributing factor in car accidents.

Driver errors are broken down into two types: decision errors and performance errors. Decision errors are mistakes made when a driver recognizes a dangerous situation but chooses the wrong action or inaction. Examples of this include running a red light, driving too fast for the current road conditions or ignoring a warning sign.

Performance errors are the physical mistakes a driver makes while behind the wheel. These can include everything from falling asleep at the wheel to failing to properly maneuver a turn or curve on the road. Some common mistakes that lead to car accidents include:

Internal and external distractions are the leading cause of distracted driving crashes. This can include things like talking on the phone, texting, daydreaming, and singing along to music while driving. Other factors that lead to driver error include not wearing seat belts, eating or drinking while driving, and adjusting controls on the vehicle without proper safety precautions.

Aggressive and reckless driving can also be dangerous for drivers and others on the road. These behaviors include speeding, changing lanes too quickly, failing to use rear turning signals, tailgating and more.

Weather conditions can also play a role in car accidents. Rainy or snowy weather can make the roads slick and difficult to drive on. Drivers should always pay attention to the road and slow down if they are in bad weather. If a driver fails to take these steps and causes a crash, they may be responsible for paying for the damages of those injured in the accident.

2. Poor Road Conditions

Even the most careful drivers can be involved in a car accident when road conditions are unsafe. Unsafe road conditions can include anything from potholes and major cracks to lack of lighting or inadequate signage. When these issues cause an accident, victims may be eligible for compensation.

Government agencies that oversee road maintenance and design may be liable for accidents caused by poor conditions on roadways under their control. Cities and states must ensure that roads are maintained properly, which includes keeping up with repairs and maintaining appropriate levels of lighting and signage. If a roadway defect causes a crash, the government agency in charge of that road must take steps to repair the problem. This includes ensuring that signs are clearly visible and that warnings about construction zones or other hazards are placed appropriately.

Other potential road defects that can lead to car accidents include improper guardrails, narrow lanes and confusing intersections. These factors increase the risk of collisions, especially at night or during bad weather.

In addition to causing serious injuries, car accidents caused by poor road conditions can be very expensive to resolve. Victims can face hospital bills, lost wages, medical treatment and ongoing rehabilitation expenses that can strain any family’s finances.

In cases involving dangerous road conditions, it can be difficult to determine who is responsible for the accident. If a private road was in question, then finding the person or company that owns the roadway could be straightforward. However, most roads are under the responsibility of a city, county or state government entity. In these instances, proving negligence can be more challenging as the law protects government entities from personal injury claims when they are acting in their official capacity.

3. Faulty Vehicles

Even though modern cars have become a lot safer, they are still mechanical in nature and can breakdown if not properly cared for. When a vehicle malfunctions, it can cause an accident that leads to serious injuries. This can happen if a key safety component, such as the brakes or airbag, is defective or fails to operate as designed.

These car accidents are known as defect-related crashes and can be extremely dangerous for those involved. If you are injured in a crash that you suspect may be the result of a faulty car part, you should speak to an attorney immediately. You could file a claim against the manufacturer or other parties that could be held responsible, including the dealership that sold you the car and/or the mechanic who worked on it.

A rear-end collision is a common type of car accident that occurs when a driver slams on their brakes to avoid hitting the vehicle in front of them, but loses control and slams into the back of the vehicle in front of them. These crashes typically occur at high traffic volume times, such as rush hour or when a driver is following too closely.

Head-on collisions are one of the most serious types of car accidents and often result in severe injuries and fatalities. They usually occur when two vehicles driving in opposite directions collide with each other, and are most likely to be caused by intoxicated or distracted driving, fatigued driving, road conditions and reckless driving.

When a vehicle accident involves a head-on collision, it can be very difficult to determine who is at fault. This is because both vehicles have a very strong impact on each other and it can be challenging to tell which vehicle came into contact with the head-on collision first. This is why it is important to seek the help of an experienced accident lawyer as soon as possible.

4. Vehicle Defects

A vehicle can be faulty in several ways and, even if the driver is doing everything right, they may lose control of their car and crash as a result of a mechanical failure. Whether it is from poor maintenance or a design defect, any of these issues could lead to serious injuries or death.

While automobile safety has improved significantly over the last few decades, there is still a substantial number of car accidents due to defective vehicles and parts. Sadly, car manufacturers often rush production and cut corners to meet deadlines, which can end up costing the lives of consumers. This is evident by the number of recalls that have occurred in recent years.

These defects can be anything from faulty airbags that deploy too early or with too much force to faulty tires that can cause you to lose control of your car. They can also include ignition and fuel system defects that can result in a fire that causes burn injuries after a crash.

Luckily, you can help prevent mechanical failures by regularly performing maintenance on your car and getting it in for regular inspections. However, if you suffer an accident from a manufacturing defect or any other type of car problem, it is important to have documentation from a New York mechanic that proves the cause of your accident.

When a vehicle has a defect, the manufacturer or the company that installed the part may be liable for your damages. Our team of lawyers at Buttafuoco & Associates has the experience and resources to take on large auto manufacturers and their insurers to get you the compensation you deserve for your injuries.

5. Other Factors

Car accidents are often caused by external factors that are not related to driver error, such as bad weather or road conditions. These external factors can cause a driver to lose control of their vehicle or fail to see a hazard in time to avoid it.

These factors can include a variety of things, such as the physical condition of the roadway, weather conditions and even the mechanical performance of a car’s brakes and tires. It is not possible to account for every possibility that could have contributed to an accident, but having a general understanding of the most common causes can help if you are involved in a crash or considering making a car accident injury claim.

Distracted driving is a leading cause of accidents. Whether it’s sending a text, talking on the phone or eating a snack, distraction causes your brain to switch between tasks, making you less able to consistently focus on the road ahead of you.

Speeding is another common cause of car accidents. Whether they are running late for work, trying to keep up with traffic or simply enjoying the feeling of being behind the wheel, many drivers forget how dangerous it is to drive above the speed limit.

Other forms of reckless driving, including tailgating and switching lanes without a signal, also contribute to a large number of accidents. Then there is the dangerous combination of alcohol and drugs, both legal and illegal. Having even one drink can impair your ability to react quickly enough if the driver in front of you suddenly brakes. This can lead to a deadly rear-end collision. It is never okay to drink and drive.

The Importance Of Having An Accident Attorney On Your Side

Maryland Accident Attorney helps clients get the compensation they deserve for their medical expenses, property damage, and lost income. They also claim damages for pain and suffering, which is not always included in insurance claims.

Attorneys evaluate the specifics of each case, including determining liability, examining the extent of injuries and future damages, and considering comparative negligence laws. They then build a strong case using evidence like police records, witness testimony, and medical reports.

accident attorney

Gathering Evidence

To win a car accident claim, you must have strong evidence on your side. An attorney can help you find and collect this evidence. They can also make sure that your evidence meets legal standards for admissibility in court. Some types of evidence include photographs, witness statements, accident reports, and video footage.

Photographic evidence is one of the most important pieces of evidence to have. Photos can be used to show the scene of the crash, the injuries sustained, and the damage caused. If you are able, try to take photos of your injuries and the accident scene as soon as possible. A camera on a smartphone is perfect for this. This way, the photos will have a time stamp and will accurately represent how the evidence looked immediately after the accident.

Your accident attorney will also want to see any written evidence that you have. Keeping a journal about what happened can be an excellent piece of evidence to have on your side. It can be difficult to remember the details of an accident, especially while you’re in pain and have to go through medical treatments. A written account of the incident will help your attorney understand what you went through.

Other pieces of evidence your lawyer will look for are police reports and incident records. These documents provide an objective account of the incident and can help establish liability. They will also look for any verbal admissions made by the other party, which may be used to prove negligence or fault.

Lastly, your attorney will want to see any medical records that document the injuries you sustained in the accident. These will include any bills, receipts, diagnostic test results, and discharge instructions. They will also consult expert witnesses when necessary, which can give specialized insights into the case.

The more evidence your accident attorney has on your side, the easier it will be to hold the insurance company responsible for your damages. Having an experienced lawyer on your side will help you avoid the common mistakes that many victims make when trying to gather their evidence.

Defending Your Case

Your attorney will act as your advocate at every step of the process. They will safeguard your legal rights and pursue financial compensation that will cover all of your losses. Whether they are dealing with an insurance company or presenting your case to a judge and jury, an experienced accident attorney will be your champion, making sure that the facts of your case are heard and that you are fairly compensated for your damages.

An accident lawyer can help you build a strong case by working with experts to gather and review supporting evidence. They will interview eyewitnesses, accident reconstruction experts, and medical professionals to get the information they need. They will also be able to interpret and apply complicated statutes and court doctrines that may affect your case.

In addition, a top car accident attorney will have a track record and reputation. This can be beneficial when negotiating with an insurance company or in court, as opposing parties and judges will be more familiar with them and may treat them with more respect. They will also have a network of professional connections that can be useful when advocating for your case or obtaining additional resources.

Insurance companies are incentivized to undermine your claim or reject it, so they will work hard to use anything they can to do so. Your attorney will be able to anticipate the tactics of the insurance companies and develop an appropriate strategy to counter them. They will be able to handle the back-and-forth negotiations while you focus on getting better.

Oftentimes, a person’s injuries are more severe than the damage to their vehicle. They can also be entitled to non-economic damages, which include pain and suffering and a diminished quality of life. An experienced attorney will be able to evaluate your injuries and explain how they have affected your life to determine the appropriate amount of damages for you.

An experienced accident attorney can help you recover all of your damages, including medical bills, lost wages, property damage, and pain and suffering. They can also make sure that you are properly compensated for any future loss of income and other associated expenses.

Negotiating With The Insurance Company

There is a lot to consider after being in an accident. You may have medical bills to pay, property damage that needs to be repaired, lost wages because you were unable to work, and even emotional distress from your injuries. All of this can add up quickly and you could be struggling to get by. This is why filing an injury claim can be so important. A car accident lawyer can help you build a strong case that includes the damages to which you are entitled.

Your lawyer will take on the role of advocate and negotiator to negotiate with an insurance company on your behalf. He or she will work to strengthen your claim by gathering important details about the accident such as witness statements, police reports, and photographs. They will also review your medical records and bills to determine the extent of your injury and the total cost of your losses.

In most cases, the insurance company will start with a low offer for your injury claim. Your attorney will advise you to send a demand letter for the maximum amount that you think your injury is worth. They will then argue that your demand is too high, and you will respond to each of the points they make in turn. Eventually, you will settle.

Car accident lawyers are skilled at negotiating and have years of experience dealing with car insurance companies. They know the tactics that insurance adjusters use to try and lower your claim and will be able to counter them in a way that allows you to reach a fair settlement.

When preparing for negotiations, your lawyer will prepare documents such as a list of all of your medical expenses, a copy of your employment history, and information about your lost income. This will be used to show the insurance company that you have sustained significant financial losses because of your injuries and that they are liable for compensating you appropriately. In addition, your lawyer will keep careful notes about all conversations with the insurance adjuster and request that any settlement offers be memorialized in writing.

Filing A Claim

A vehicle accident is a traumatic experience for everyone involved. The injuries and property damage that result can be devastating for families. Despite laws in place to promote safety, accidents still occur. Many are caused by driver error. Distracted driving, speeding, failing to yield the right of way, and drinking and driving are common causes of car accidents. These errors can be caused by a variety of factors such as using a cellular phone, reading, eating, putting on makeup, changing the radio station, or a combination of these.

An experienced attorney can help you navigate the complex legal process of recovering compensation for your losses. They will work to gather eyewitness accounts, police reports, medical records, and receipts for repair or replacement costs. They will also communicate with insurance companies and the other party’s legal representatives. In some cases, it may be necessary to go to trial.

Regardless of the specific circumstances surrounding your crash, an attorney can help you get the money that you need to recover from the physical and emotional effects of your accident. They will take into account your current and future medical treatment costs, loss of income, pain and suffering, and other damages. They will use this information to build a strong case on your behalf that will justify the amount of compensation you are entitled to receive.

The first step in pursuing compensation is to file an insurance claim. Under the no-fault system, you will first file a claim with your insurance provider. If your expenses exceed your policy’s limits or if you meet the serious injury threshold, you can then file a lawsuit against the at-fault party.

Document everything as soon as possible after the crash. Take photos of the scene, and of the vehicles involved in the accident. Make sure to get the names, addresses, and insurance information for all parties. Try to write a summary of what happened. Don’t rely on your memory, as details can become twisted or lost over time. It’s a good idea to take down the name and badge number of the responding officer, too.

Soft Skills For Attorneys

Whether it is filing a lawsuit or negotiating with another party, attorneys help clients navigate the legal system. They take on multiple cases at once, and their responsibilities require attention to detail for each case.

While attorneys may come at a price, they provide invaluable resources and support during difficult legal situations. When choosing an attorney, consider the following qualities: Contact Birth Injury Attorneys now!

The legal landscape is complex, and thriving in the field requires a holistic skill set that goes beyond mastering statutes and precedents. Lawyers need to have the ability to dissect complicated issues, articulate arguments with precision and negotiate with a blend of firmness and empathy. Fostering a culture of continual learning, embracing innovative technologies and upholding the highest ethical standards are just as essential as specialized legal knowledge to the success of modern attorneys.

The pursuit of excellence in the legal field is an ongoing process that requires commitment, dedication and strategic positioning. Lawyers can boost their visibility by consistently delivering outstanding results and leveraging their accomplishments to showcase their expertise on professional platforms, websites, and marketing materials. They can also seek out opportunities to receive accolades by building a strong network, seeking mentorship, and participating in high-profile cases.

A successful career as a lawyer begins with careful self-reflection to understand what motivates you and fuels your passion. From here, it’s important to explore the many available specialties and find one that aligns with your unique skills and interests. For example, if you are fascinated by business transactions and corporate structures, corporate law might be the right fit for you. Similarly, if you enjoy courtroom drama and the thrill of defending criminal justice, criminal law may be your calling.

Advanced research skills are a must for lawyers, who often need to dive deep into legal precedents and research historical records. Being proficient in traditional legal research as well as online databases and AI-powered search tools allows you to quickly and effectively sift through countless sources of information to find the pearls of wisdom that will help you best serve your clients.

Effective time management and organizational skills are vital to the success of a Lawyer, as they are often responsible for managing multiple cases simultaneously. Being able to prioritize tasks, adhere to strict deadlines and maintain meticulous records are essential for effective case preparation and client service. This also includes the ability to delegate work and utilize streamlined processes like practice management software to maximize efficiency.

Advocacy Skills

One of the most important skills for a lawyer is advocacy. Attorneys use their advocacy skills to promote the legal rights of their clients, influence policy decisions, and create positive social change. Strong advocacy skills allow attorneys to navigate legal complexities, make compelling arguments, and uphold justice for all.

Attorneys often engage in a variety of advocacy activities, from drafting and presenting policy papers to peaceful protesting or promoting awareness via various media channels. Consequently, they need to be proficient in the art of creative communication and presentation. This includes the ability to write succinctly and present ideas clearly. In addition, advocacy work requires a lot of research and analysis to provide accurate information to their stakeholders. Therefore, it is essential to have the ability to maintain and manage a robust record keeping system.

Moreover, advocacy work may also include the need to deliver speeches and presentations to different audiences. This is typically a performance-based skill and requires the attorney to have a good command of verbal communication. Additionally, the attorney must be able to answer questions from judges in a way that is clear and concise.

In the legal arena, an attorney’s advocacy skills can be a major determining factor when it comes to winning cases or gaining a high standing in their profession. To develop their advocacy skills, barristers can take part in mooting competitions during law school and secure a pupillage to gain practical experience while under the supervision of an experienced barrister.

Furthermore, they can attend various workshops and training sessions to build their advocacy competencies. They can also utilize digital tools to network with potential advocates and other stakeholders in the industry.

In addition to this, it is essential for attorneys to have strong time management and organizational skills to ensure they are able to meet deadlines. They can accomplish this by using techniques like strict prioritization, time blocking, and delegating when appropriate. They should also learn to say no when they feel overwhelmed. Lastly, they should prioritize their own health and well-being by exercising, eating right, and getting enough sleep. This will ensure they are able to perform their best for their clients and other stakeholders.

Strong Time Management and Organizational Skills

In addition to being able to communicate with clients effectively, attorneys must be able to work efficiently and meet deadlines. This is why strong time management and organizational skills are considered essential soft skills that employers look for in candidates. When an attorney is able to manage multiple tasks, projects, and assignments simultaneously, it helps ensure that all deadlines are met in a timely manner. It also helps to reduce stress and prevent work conflicts.

Aside from meeting all deadlines, an attorney must be able to prioritize tasks based on their importance. This is a common skill that all individuals must master in order to be successful in their careers and personal lives. When you are able to determine the most important tasks, it allows you to focus your efforts and energy on those that will yield the greatest return. This includes making a to-do list, setting SMART (specific, measurable, achievable, relevant, and time-bound) goals, and identifying any potential obstacles that may hinder your ability to meet your objectives.

An effective way to hone your time management and organizational skills is by becoming involved in social or extracurricular activities. This could include joining a club or organization, working part-time in a customer service role, or even volunteering. It is a great way to become familiar with working in a team and gaining experience working with other people.

Attorneys often have to deal with large amounts of information and complex issues. It is important for them to be able to organize this information and analyze it for accuracy. It is also beneficial to be able to find ways to simplify complicated topics and make them easier for their clients to understand.

When an attorney is able to prioritize and delegate tasks, they are able to save valuable time that can be used for other things such as completing their own assignments or working on client cases. This enables them to meet their daily goals, which leads to a more productive and less stressful working environment. In addition, an organized workplace is more efficient, which can lead to better results for clients and increase overall productivity.

Communication Skills

As an attorney, you may need to communicate with a wide range of people. Whether you are speaking with a client, your colleagues or judges, having strong communication skills is vital to build trust and prevent misunderstandings. It is also helpful when negotiating settlements or arguing your case in court.

Lawyers must be able to speak clearly and concisely in order to explain complex legal concepts to their clients and other lawyers. Additionally, they need to be able to listen attentively and understand what their clients are saying. If a lawyer cannot effectively communicate, it can be extremely difficult for them to build a strong lawyer-client relationship that will lead to repeat business or referral sources.

Strong verbal communication is critical for attorneys because they often need to speak in front of a jury or a judge during trial. They must be able to describe the facts of the case, as well as their opinion of what should happen in court. In addition, they need to be able to answer questions from their clients and other parties involved in the trial.

Effective written communication is also important for attorneys, as they must be able to draft various legal documents and emails. In addition, they must be able to clearly express their opinions and understand what other parties are saying in order to draft persuasive and accurate legal documents. This includes understanding technical and legal terminology and writing in a way that is easily understood by the reader.

In-house counsel who possess excellent verbal communication skills are able to create and sustain healthy relationships with their colleagues and clients. They are able to articulate their ideas clearly and effectively in both written and oral communications. They are able to ask meaningful questions, and they are able to listen to their clients’ responses without interrupting or over-directing the conversation.

The ability to be a good communicator can be an asset in many different industries and jobs, but it is especially essential for the legal field. For young associates, it is important to take a variety of classes on communication skills as they go through law school and practice in the workplace. If you are looking for CLE courses on law-related topics, Destination CLEs has several options that can help you become a more effective communicator in the legal world.

Asset Protection Planning

Many people do not consider the need for an asset protection plan until they are threatened by a lawsuit. Unfortunately, this is too late for effective legal fences to be erected around assets. Those who should consider asset protection include anyone who could potentially be sued for professional malpractice, such as doctors and lawyers, or those looking to minimize extra capital gain taxes on property. An experienced Asset Protection Lawyer at https://jdblawfirm.com/ can design a strategy that makes sense for your unique circumstances.


Asset Protection Planning

The premise of asset protection is that a person can legally separate his or her ownership of property from actual possession. This may help prevent assets from being seized by creditors or lost through lawsuits, divorce settlements and other events. Various legal vehicles can be used for this purpose, including trusts. An experienced estate planning lawyer can help a client decide which trust to use and determine the best timing for the transfer of assets into the trust.

An irrevocable trust is an essential tool for protecting assets from future lawsuits or judgments by creditors. A trustee manages the trust’s assets on behalf of beneficiaries, who typically do not have direct access to the assets. The trustee can also set up a spendthrift clause to prevent the beneficiary from selling or giving away trust assets without specific stipulations. In addition to providing a level of security against creditors and lawsuits, an irrevocable trust can protect the beneficiary from taxes imposed by the state or country in which the trust is located.

Another type of trust is the domestic asset protection trust (APT). A domestic APT is a tax-efficient vehicle to shelter assets from creditor claims and lawsuits. A domestic APT can be established with a single beneficiary or multiple beneficiaries. The trustee is appointed by the grantor, and can be a family member or a professional. The trustee can control and manage the trust’s assets, as well as make distributions to the beneficiaries.

However, a domestic APT should be considered carefully before making the decision to establish one. It must be made clear to creditors that the APT is intended to shield assets from creditor claims and lawsuits. If the creditor or plaintiff can prove that the APT was created in order to avoid paying a debt or obligation, a court may invalidate the APT.

A legal vehicle that offers the most protection from creditors and lawsuits is a foreign asset protection trust (FAPT). A FAPT is a complex structure to establish, but it can provide significant benefits for a wealthy individual. A FAPT can protect assets from a spouse’s claim in the event of a divorce, and it can reduce or eliminate federal estate taxes. A FAPT can also be used to secure Medicaid benefits, although a person must meet certain eligibility requirements.

Limited Liability Companies (LLCs)

The use of a limited liability company is one of the most common and effective strategies for protecting assets against claims by creditors or judgment holders. These business entities are created by state law and, in most cases, provide a strong barrier between a creditor and the personal assets of the owners.

In many cases, the formation of an LLC can help to minimize federal income tax expenses as well, which can significantly reduce the amount of taxes a business pays. These benefits make the LLC a popular choice among entrepreneurs who want to incorporate their start-ups.

However, the protection offered by an LLC is not entirely foolproof, especially when it comes to non-business claims such as malpractice lawsuits or negligence claims for accidents. For this reason, some business professionals and property owners choose to combine an LLC with an asset protection trust to offer additional security against such claims.

The main benefit of using an LLC for asset protection purposes is that the entity’s statutes generally prevent creditors from seizing the company’s assets. Instead, a creditor can be granted what is known as a charging order. With a charging order in place, a creditor can only obtain the debtor-member’s distributional interest in the LLC, but not the ownership or control rights.

Another advantage of an LLC is that the entity is able to be managed by its members, who can include non-owners or professional managers. This can allow for a great deal of flexibility when it comes to day-to-day operations and can be a great asset protection strategy as long as the operating agreement is properly written.

The operating agreement should also specify that the LLC is a separate legal entity from its owners, which will further protect the personal assets of the members. It should also state that the owners will not be liable for the corporation’s debts, breaches of contract or damages to third parties caused by the corporation or its employees. In addition to an operating agreement, an LLC can be strengthened with the use of a partnership trust and offshore locations that offer superior protection to what is available in the United States.

Family Limited Partnerships (FLPs)

A family limited partnership is a very useful tool for asset protection planning. It functions much like a limited liability company (LLC). The difference is that FLPs are primarily used by families and can include non-family members as partners. They also offer a more flexible management structure.

FLPs allow family members to centralize all their assets in one entity and can help prevent the loss of personal assets in a lawsuit or bankruptcy. The family can also decide how income and distributions are allocated among partners. This is especially important for people with a significant number of assets, such as real estate income properties, intellectual property and business interests. It’s essential to segregate high-risk assets from low-risk ones to minimize risk.

Creditors are unable to touch assets in an FLP. In addition, a well-drafted partnership agreement can limit the rights of creditors to a charging order, which is an attachment against the general partner’s share of the profits and income generated by the entity. This is not a full shield, but it can be enough to force the creditor into settlement negotiations with the partners and reduce the value of their claims.

Depending on the state, an FLP can also provide tax advantages. Many states consider FLPs to be pass-through entities and therefore are exempt from federal income tax. This can save on taxes for many families with substantial assets.

Finally, FLPs can be used to transfer ownership to heirs in a tax-efficient manner. Parents can transfer ownership of their FLP interest systematically over time, utilizing gift exemptions and valuation discounts. This can be particularly beneficial for affluent families who want to transfer their wealth to younger generations.

We often use FLPs in conjunction with other sophisticated techniques to achieve comprehensive asset protection. For example, we may recommend separating business assets from personal ones in an FLP and placing those assets inside of a Living Trust. In this way, a judgment creditor can only go after the business assets in the FLP, while keeping his hands off your personal home, bank accounts and other personal items.


In many cases, a business owner will use some of their own personal assets to start up and run a successful enterprise. This might include cash, property and credit. As a result, their personal assets may be at risk from the business’s creditors or legal liabilities. Forming a corporation or other legal entity can help to safeguard the business’s assets and separate the owners’ personal assets from those of the company. The most useful type of structure for this purpose is a limited liability company (LLC), but there are other options as well. A consultation with an asset protection and estate-planning professional will help to determine the best business structure for a specific situation.

While some people attempt to protect their assets by hiding or concealing their ownership of property, this is illegal and can be considered fraudulent under the Uniform Fraudulent Transfer Act of 1984. Effective asset protection planning involves the legal restructure of assets to reduce exposure to potential liability in conjunction with estate and tax planning goals. This process should be started before a claim or liability occurs because it is often too late to implement any meaningful asset protection strategies once a lawsuit is filed.

The types of assets that are at risk from creditors and civil judgments vary according to the individual’s circumstances. The most common assets at risk from lawsuits are cash, real property and investments. Those in professions that carry some level of liability, such as doctors and lawyers, might need more substantial asset protection strategies than those who are less at risk.

A qualified estate planner can help to reposition assets so that they are out of reach from creditors and civil judgments. However, this is not a quick or temporary fix. It must be done well before a claim is made against you or you anticipate that a claim will be made. Waiting until a lawsuit is filed exposes any asset protection strategy to attacks and reversal by a court, and it’s too late to employ any significant strategies once a claim or threat arises.