Page 28 - July2021

Are your assets protected?
Today, you have risks at every turn, from on-duty lawsuits, the high cost of long-term care, auto and home accidents or years of probate. All too often,
we settle and fail to consider the importance of comprehensive protection. In other cases, all
in individual protection for damages caused by you or a covered driver on your policy. Similarly, you have $300,000 total coverage for all parties injured in the same accident. Consequently, you are personally responsible for damages that exceed these
we need is the best legal document to protect what we own. It is not worth rolling the dice and sacrificing your savings or your hard- earned assets. And it is next to impossible to keep up with what you need for protection.
amounts.
Even a minor accident can result in hospitalization, ex-
tended medical care or death. However, umbrella insur-
ance costs an average of only $250 per year. The policy provides an additional $1 million in liability protection for
each covered vehicle and your residence.
Investment real estate
If you own commercial property, your renters can sue you for various reasons — for example, claims made for injuries resulting from property defects inside and outside of the residence. First, be sure you have the right coverage and are not overpaying. Second, eliminate any personal liability concern for excess claims by hold- ing title to any investment property in either a corporation or an LLC. A series LLC allows you to separate liabilities from each prop- erty if you own more than one investment property.
Long-term healthcare
Will you need it? For those who live past age 65, 70 percent will need some long-term healthcare in their lifetime. Although only 40 percent of people will require inpatient nursing care, all long- term healthcare is expensive. There is now a hybrid insurance pol- icy that is offered exclusively to Benefits Plan members. This poli- cy provides long-term care insurance and, if not accessed, will be converted to life insurance at your death.
Living trusts
At the end of your life, or if you become incapacitated, if you have property or bank accounts in your name, they are at risk of probate.
• A will must be probated. The rule is that no one can legally sign your name. Therefore, all assets in your name are subject to the complete probate process at your death or incapacity. This court process averages 18 months and is costly.
• A fully funded living trust completely avoids probate.
• A living trust estate plan includes both healthcare and finan- cial power of attorney documents and a last will and testa- ment for guardianship of minor children and to “pour over”
any assets still in your name at your death, out of probate.
Revocable living trusts
This is a legal document that allows you to privately pass your assets to your family, friends or charities after your death. These include real estate, bank accounts, stocks and minor beneficiary policies and accounts. Your life insurance policies and deferred compensation accounts can name your living trust as beneficiary, subject to essential tax considerations. However, it is often recom- mended that adult beneficiaries without legal or other restrictions be named as beneficiaries.
Police Benefits Plan
Call my office today to lock in your FOP 33 percent reduced rate for a complete living trust estate plan. For an expanded presenta- tion of asset protection strategies and to receive regular updates on strategies to protect what you have earned, visit and register with the Police Benefits Plan. Registration for FOP members and families is free. Visit fopbenefitsplan.com or call 312-559-8444 for assistance with registering.
Tom Tuohy is the founder of Tuohy Law Offices and the FOP Benefits Plan. He has been a police lawyer for over three decades. His father was a CPD detective, and his grandfather was CPD Chief of Major Investigations. You can reach Tom at 312-559-8400.
FOP
Benefits Plan
TOM TUOHY
Many changes you need come without warning. I will review a few asset protection strategies here and in the next several months. I encourage you to visit your Police Benefits Plan for more detail or contact me directly for more information.
Homestead real estate
Suppose you are married and currently working as the police. In that case, your principal place of residence should be titled in tenants by entirety. This form of legal title protects your marital property from lawsuits and creditors of one spouse.
Firearms
Being the police 24/7 carries a significant risk of liability, espe- cially for using your firearm while off duty. It would be best to have insurance for your protection for as long as you carry a firearm. However, you can also obtain insurance protection for on-duty firearm claims. Check out the Benefits Plan website for more in- formation.
Automobile
The most common auto policy written today is the same as it was 25 years ago: $100,000/$300,000. It means you have $100,000
28 CHICAGO LODGE 7 ■ JULY 2021