What Physicians and Executives Need to Know About Asset Protection
By Josh Perlmutter
In conversations with physicians, executives, and business owners, I often see a pattern. There is a strong focus on growing wealth, but very little time spent on protecting it.
That is understandable. When you are working long hours, managing responsibilities, and building your net worth, asset protection does not always feel urgent. Until something happens.
“That Would Never Happen to Me”
Many professionals feel protected because they carry malpractice insurance, liability coverage, or corporate D&O policies. These are important tools, but they only cover certain types of risk. They do not fully protect your personal assets.
Lawsuits, divorces, business disputes, or creditor claims can still reach into your personal finances if things are not structured correctly.
What Risk Really Looks Like
Consider a physician who owns investment property in their own name. If a tenant is injured and sues, and the damages go beyond insurance coverage, the physician’s personal assets could be at risk. Or take an executive going through a divorce. If they hold restricted stock (RSUs) and there is no prenuptial or postnuptial agreement, a significant portion of that equity could be lost, even if it has not vested yet.
These kinds of situations may be more common than many people expect.
Planning Works Best Before It Is Needed
Asset protection is most effective when it is part of your plan from the beginning. Once a lawsuit or dispute begins, your ability to make changes is often limited.
Some of the strategies we often use include:
Proper titling of assets (e.g., tenants by entirety, LLCs, trusts)
Liability shields through legal entities (e.g., real estate in an LLC)
Domestic asset protection trusts in favorable jurisdictions
Coordinated estate and tax planning that also limits exposure
These are not one-size-fits-all solutions. The right approach depends on your specific risks, assets, and goals.
Wealth Without Protection Leaves You Exposed
Financial planning endeavors to both grow your wealth and make sure it stays protected. If you have built meaningful assets over the years, it is worth taking the time to make sure they are properly protected.
At Atlas, we help professionals take a complete view of their finances. That includes not only investing and planning for the future, but also reducing unnecessary exposure wherever possible.
If you are not sure how well protected your assets are today, now may be a good time to evaluate your strategy. It is much easier to get ahead of risk than to react to it later. Reach out to schedule a conversation.
Atlas Financial Services, Inc. (“Atlas Financial”) is a technology company and owner of ATFS Advisers LLC (“ATFS” or “Atlas”). All advisory services are offered through Atlas, an SEC registered investment advisor. All investments involve some degree of risk, including loss of principal. Material prepared herein has been created for informational purposes only and should not be considered investment advice or a recommendation. Information was obtained from sources believed to be reliable but was not verified for accuracy.
