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Put car under LLC for asset protection?

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  • I Find This Humerus I Find This Humerus 
    Participant
    Status: Physician
    Posts: 252
    Joined: 12/02/2017
    500mil OBGYN lawsuit in my state 

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    as in half a billion dollars?

    Click to expand…

    Sorry I meant to type $50 million

     

    https://www.nbcconnecticut.com/news/local/Jury-Awards-58-Million-in-Malpractice-Suit-122605689.html

    #221408 Reply
    Avatar afan 
    Participant
    Status: Physician
    Posts: 104
    Joined: 05/07/2017

    You would own the LLC. If you were to lose a malpractice suit then your interest in the LLC would be among the things that the plaintiff could go after. If there were no business purpose to having the car in the LLC then a judge might declare it unprotected anyway.

    You could increase your malpractice coverage. It is hard to arrange a way to use something as if you own it but legally have it be beyond the reach of your creditors. It is supposed to be hard to do this.

    I don’t know whether it is true that the courts would never take your house or your car. Tenants by the entirety or homestead, depending on your state, may protect your house. Unless you have some extremely expensive car, this is not worth worrying about. If your malpractice limit is $30,000 short of the judgement, I suspect the plaintiff would rather just wait for you to generate some more money than get your used car.

    If you have a $300,000 car, then the plaintiff’s attorney is going to be thrilled to get that information to the jury.

    #221413 Reply
    Avatar nephron 
    Participant
    Status: Physician
    Posts: 263
    Joined: 05/09/2019

    I like the idea of forming an llc for your scalpel for malpractice protection.   Good luck penetrating that, I will send you the scalpel if I lose the case :).

    #221419 Reply
    Avatar G 
    Participant
    Status: Physician, Small Business Owner
    Posts: 1863
    Joined: 01/08/2016
    500mil OBGYN lawsuit in my state 

    Click to expand…

    as in half a billion dollars?

    Click to expand…

    Sorry I meant to type $50 million

     

    https://www.nbcconnecticut.com/news/local/Jury-Awards-58-Million-in-Malpractice-Suit-122605689.html

    Click to expand…

    $58M … so that comes out to like $2000/day if the kid lives to 80 … either that is some really expensive nursing care or the jury is trying to predict loss of future earnings based on a CEO or a franchise ballplayer salary?

    I feel bad for the family and the little boy, but it is nonsense like this that makes me wonder why any doctors do OB.  Let the lawyers deliver the babies since they seem to know how to do it so well.

    #221442 Reply
    Liked by Hank

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