Asset Protection for Physicians

According to a study conducted by the American Medical Association more than 60% of the doctors over the age of 55 have been sued at least once. These percentages are a lot higher in certain specialties like OBGYNs and surgeons. So, for physicians, asset protection is very important. Many advisors may have spoken to you about setting up and contributing to a retirement plan with one of the primary benefits being retirement planning and tax savings. What several physicians don’t realize is that 401k and defined benefit plans are ERISA plans that generally have the added advantage of protection against lawsuits, creditors and bankruptcy.

Combined with the tax saving aspect these plans are often considered a no brainer for physicians. It is also important to be open minded about nontraditional asset protection strategies like the Nevada Asset Protection Trust which is an irrevocable trust in which the grantor of the trust can also be a permissible beneficiary. Two years after the grantor contributes a portion of his/her assets to the trust, the contributed assets should be protected from the grantor’s creditors. Many financial advisors may overlook this type of a trust as it requires a deeper understanding of Nevada Trusts and many times coordination with a Nevada Trust Company which can be tedious and time consuming. However, if asset protection is one of your concerns then this is a legitimate and legal strategy which should not be overlooked.