A couple took steps to protect their assets better after their daughter was involved in a car accident.
A father, as the owner of the vehicle, was sued after his daughter was involved in a car accident. The man and his wife had previously kept their finances separated, and the husband, who had sold a property, had a large balance in his individual bank account, exposing him to litigation claims.
To help the couple protect their assets and their family from litigation, we moved their assets to Joint Tenancy by Entirety (JTE) ownership. By placing assets into JTE, the assets are now protected against the individual liability of either of the spouses. Our team also recommended that the liability limits on the auto policy be increased to 250/500 since the couple held over $600,000 in taxable “unprotected” investment accounts.
Finally, we recommended adding umbrella liability coverage to protect larger taxable investment accounts and their rental property. If an auto accident results in more than a $250,000 claim, the umbrella protects them for an additional $1 million.
