As a dentist, you’ve worked hard to build your practice. The last thing you want is for one lawsuit to cause financial ruin.
Malpractice claims against dentists are not uncommon. Consider the following:
You can avoid catastrophe by taking steps to protect your assets. Asset protection uses legal tools to protect your assets from creditors. Protecting your assets makes it difficult for litigators, creditors, and others to win a judgment against you. It also safeguards you against malpractice lawsuits, divorce, partner disputes, bad investments, poor tax planning, economic downturns, and more.
Most physicians are employed and protected by large healthcare providers, but most dentists own their practices. That is why practicing dentistry can carry higher risk.
Your assets include:
Read on to learn how to protect your assets before a claim or liability arises.
Liability insurance is the best defense against legal action. But malpractice insurance is just one way to protect yourself. You also need disability coverage and protection for your home and car to avoid personal claims against you and your dependents. An umbrella policy can cover gaps in other policies or claims that are higher than your limits.
A domestic asset protection trust allows you to transfer assets to a trust while receiving distributions. With a domestic asset protection trust, you can still access your assets while shielding them from creditors. It can also be an alternative to a prenuptial agreement to protect premarital assets.
Incorporating your practice helps you divide your personal and business assets, shields your business against creditors, and separates the property your practice owns from the dental practice itself. The assets within the LLC are the only things at risk if someone sues your business for malpractice or an accident on your property.
Related: 9 Reasons You Should Choose A CPA Firm That Specializes In Your Industry
Consider signing an employment agreement whenever a new partner joins your practice. A shareholders’ or members’ agreement outlines any future buy-ins and buy-outs.
Dental accountants and attorneys specializing in private medical and dental practices provide advice and help you avoid any issues that put your assets in danger. Asset protection strategies are complicated! Familiarity with these issues will deter patients or others from making claims against you and protect your assets if they do.
At Chaliff + Associates, our dental CPAs have extensive experience helping Memphis area dentists protect their hard-earned assets. We can help you achieve practice goals and protect your business interests. Contact us for a consultation and learn why you should trust our team with your asset protection strategies.