During the life of the medical, legal, or accounting professional, it is important to ensure your personal assets are protected from any claims and lawsuits against the professional practice. We can effectively use the existing law to limit your exposure; create LLCs to own specialized or valuable equipment and/or real estate, removing it from the practice; create “lease back” agreements between your practice and the LLC; and use domestic asset protections trusts to maximize the equity stripping.
If you become incapacitated or pass away, your spouse or children cannot continue the professional practice unless they are licensed in the same profession, so there needs to be a plan in place for these circumstances. If the practice requires access and handling of a private and confidential client information, this information must also be protected upon your death in compliance with the applicable medical records law or ethical regulations for other professions.
Given what’s at stake personally and professionally, if you are a professional in private practice, you need to plan for business succession early and educate yourself to ensure a seamless transition and retain the maximum value of your practice.
A well-thought-out succession plan, crafted in advance with a guidance of an experienced attorney, can maximize the assets, help to avoid unnecessary legal and financial issues during the transition period, and preserve your legacy.