Asset Protection Law Journal : Asset Protection Lawyer & Attorney : Kenneth J. Laino : Schneider Smeltz Ranney & LaFond Law Firm : Trusts, Estate Planning

Just in case you need another reminder to develop your own personal asset protection plan...

More than half the states have tried to place caps on jury awards in malpractice cases.  But the caps have been struck down by courts in several states.  On Monday, the Georgia Supreme Court (in a seven-zero decision) struck down a 2005 state law that capped jury awards at $350,000 for the pain and suffering of a malpractice victim.  The court ruled that the state could not impose such a limit on the jury.  Some states seem to be accepting limits and others are not.  There does not seem to be a clear national trend at this point in time.  You can read more about this recent court decision in either the New York Times or the Augusta Chronicle.

The Georgia Supreme Court decision is another reminder that physicians should not simply wait for state legislators or the courts to protect them from liability claims.  Malpractice insurance is of course essential, but you should not stop there.  There are laws that allow you to protect assets -- and you should take advantage of them to the greatest extent possible.  From simple steps like maximizing contributions to qualified retirement plans to more sophisticated planning with family limited liability companies, there are a variety of asset protection strategies worth considering.  But do not wait for state legislators, the courts or anyone else to help you.  Instead, focus on your own personal asset protection plan.

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In a post last month, I emphasized that a business can be lost or severely damaged by lack of a meaningful succession plan.  The title of an article in yesterday's New York Times says it all -- "Lack of Succession Plan Puts Family Venture at Risk".  The article has some useful suggestions for closely held business owners, and it outlines some of the items that should be addressed in a succession plan.

In a February post I noted that business succession planning should be a team effort.  Some matters require business expertise; but many issues require sophisticated legal planning.  For example, the New York Times article mentioned some fifth generation family owners in Columbus, Ohio who prepared a fifteen year plan to pass on the company to the next generation, using a mix of grantor retained annuity trusts and family limited partnerships.  These vehicles can lower tax liabilities as well as provide a legal framework for succession in the business.  This is a good reminder that careful business succession planning may help save taxes and provide other benefits in addition to simply determining who will run the company.

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