[AK] [AK] I’m a neurosurgeon. How do I shield my assets from malpractice claims?
I’m a neurosurgeon. Is there anything I can do to protect my assets from lawsuits? I frequently work on metastatic lesions. Can I protect my home equity, retirement account, etc., from a future malpractice claim that exceeds my coverage? I’m in Anchorage, Alaska.
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A few points:
- Generally, you can exempt up to $72,900 of equity in your primary residence. If a judgment creditor records a lien and you later sell, the first $72,900 is protected; amounts above that may be reachable.
- One option is to place your home into an LLC (AS 10.50.265). The LLC could rent the property to you; you’d use that rent to pay the mortgage. If someone sues you personally, they couldn’t sue the LLC—separate legal entity. Setup costs are modest (e.g., services like LegalZoom).
Generally, retirement accounts like a 401(k) are excluded from collection by creditors (AS 10.50.380). For personal bank savings, obtain an EIN for your LLC and open a separate LLC bank account to keep funds separate and protected.
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I’m a neurosurgeon. Is there anything I can do to protect my assets from lawsuits? I frequently work on metastatic lesions. Can I protect my home equity, retirement account, etc., from a future malpractice claim that exceeds my coverage? I’m in Anchorage, Alaska.
Lexi, Chatbot
Have you consulted a lawyer specializing in asset protection?
Not yet. Same question: asset protection for my home equity and retirement in Alaska.
Lexi, Chatbot
Are you looking for specific strategies to safeguard those assets?
Yes.
Lexi, Chatbot
Anything else the lawyer should know?
No.
Legal Eagle
I’m here to help. Are you currently being sued or expecting a suit?
No. A close friend was sued and had to settle beyond insurance, took a home equity loan. I want to avoid that if I’m ever sued. Can future litigation reach my assets?
Legal Eagle
Sorry to hear that. What assets do you have beyond your primary residence?
A brokerage and personal checking/savings—about $2 million total. Mainly concerned about protecting my house.
Legal Eagle
Do you own the house solely in your name?
Yes.
Legal Eagle
Got it.
I work for a hospital; they provide malpractice insurance. If I’m sued in the future, can courts reach my home or savings? Is my only residence protected under Alaska law?
Legal Eagle
A few points:
- Generally, you can exempt up to $72,900 of equity in your primary residence. If a judgment creditor records a lien and you later sell, the first $72,900 is protected; amounts above that may be reachable.
- One option is to place your home into an LLC (AS 10.50.265). The LLC could rent the property to you; you’d use that rent to pay the mortgage. If someone sues you personally, they couldn’t sue the LLC—separate legal entity. Setup costs are modest (e.g., services like LegalZoom).
Generally, retirement accounts like a 401(k) are excluded from collection by creditors (AS 10.50.380). For personal bank savings, obtain an EIN for your LLC and open a separate LLC bank account to keep funds separate and protected.
OK. So if I set up an LLC, I can rent my home to myself? But I own it and don’t have a mortgage.
Legal Eagle
You’d transfer the title to the LLC. You’d lose homestead protection, but assets titled to the LLC wouldn’t be in your personal name. The LLC can have other legitimate business purposes (e.g., bookkeeping/billing). You can pay rent to the LLC or have it charge you for services.
For the LLC to be legitimate, does it have to generate income?
Legal Eagle
Yes—paying rent to the LLC or charging for services would establish business activity.
Thanks.
Legal Eagle
If you need more help, you can reach me again.
Legal Eagle
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