Protect assets #assetprotectionplanning #assetprotectiontrust

4 Jan 2024 · 0 min

Watch on YouTube

0:29

In this brief video, an experienced trial lawyer explains a practical asset‑protection tactic for parents whose adult children own a vehicle. He advises that if the child is of legal age, the vehicle should be titled solely in the child’s name and only the minimum required liability insurance should be maintained. By doing so, any large judgment (e.g., a $10 million award) would have little to recover beyond the insurance payout because the child has no significant personal assets. The lawyer also notes that the absence of a substantial insurance policy to target makes potential plaintiffs less likely to file a lawsuit in the first place, thereby reducing the overall risk to the parent’s assets.

Do you have your kid's vehicle in your name? If you do and there's a lawsuit filed and there's a $10 million judgment, guess who they're going to come after for the overage? And by overage, I mean what's left after the liability insurance pays their part. Here's how you protect yourself. If your kid is above the age of majority, put the vehicle in their name alone. Get a minimum amount of liability insurance. If there's a big judgment, they don't have any assets anyway. And I can tell you after having been a trial lawyer for decades, if there's not a nice insurance policy to go after, there's much less chance that a lawsuit will ever be filed.