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Are Your Assets Legally Protected

and Properly Structured?

Planning is an essential part of grow- a doctor may find themselves interested tained in separate entities mistake can lead to los-
ing and protecting your business. As in purchasing a building from which to to protect your interests. ing all of your assets.
many doctors grow their practices, they run their medical practice. It may seem For example, assume Keeping everything sep-
encounter legal opportunities to insu- natural for your practice to own the that you have several res- arate is an essential part
late themselves from risk and capitalize building. However, it is essential to own idential investment prop- to ensuring that one lia-
on cost-effective savings techniques. this building in a business or legal enti- erties owned in your bility does not bleed into
Doctors who fail to plan may not even ty separate from your medical practice. individual name. If one all your other holdings.
realize that they are paying extra busi- Your practice can then lease the build- of your tenants slips and BY MICHAEL J. As your holdings grow,
ness costs. Even worse, they may find ing from the other entity, which will falls at the property, you O'CONNOR, ESQ. the management of these
their entire livelihood is exposed after cover the cost of any mortgage, while may be personally liable. multiple entities can be
an unfortunate event. keeping it apart from your practice. Unless your investment properties are controlled through an umbrella entity,
As your success grows, you may This structure serves multiple pur- kept in a business, that tenant may such as a family limited partnership or
become the target of unfounded allega- poses. First, you are growing your per- obtain a judgment against you individ- trust. Additional safeguards can be put
tions or unscrupulous agitators who see sonal wealth separate from your busi- ually. If you own all of your investment into place with respect to some busi-
you as an opportunity to capitalize for ness. Second, by keeping the asset out properties individually, that tenant may nesses to ensure that they cannot be
their own financial gain. Proper plan- of your business, you are insulating it proceed with collection efforts to satisfy compelled to make distributions for the
ning can assist you in avoiding these from any claims which may arise as a the judgment from all of your proper- benefit of an outside creditor.
pitfalls by ensuring you have the proper result of your business, such as medical ties! If you need help in implementing
legal structure to manage your business malpractice or even a slip-and-fall in This also highlights the importance such a structure, contact an estate plan-
and personal assets. Complex asset your waiting area. Third, by paying the of keeping each piece of real property in ning attorney. The time to act is now,
structures may dissuade potential lease from the business, you are deduct- a separate entity. By further example, since any structure implemented after
plaintiffs from attacking you in lieu of ing legitimate business expenses from assume all of your residential invest- you have knowledge of a potential
an easier target. Even better, they can your primary source of income, which ment properties are held in one busi- claim against you may be attacked as a
limit your liability within a specific can result in cost savings. ness. If one of your tenants injures fraudulent transfer. It is in your best
business by ensuring that your assets In addition, many doctors will invest themselves at the property, they may interests to enact your plan right away.
stay separated and insulated from each in real estate outside of their business- still attempt to collect against the other
other. es. While this is often a great invest- assets of that business. Keeping each Michael O'Connor, Esq., Partner at
One particular area of focus is real ment strategy, it is important to put the property separate helps avoid this situ- Lubell Rosen can be reached at
estate. necessary safeguards in place. ation. (305) 442-9046 or
For example, as their practice grows, Investment properties should be main- Without the proper structure, one mjo@lubellrosen.com.

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4 August 2017 southfloridahospitalnews.com South Florida Hospital News