Lawsuits can take a toll on assets and savings.
You are a physician.
You entered the field wanting to help others.
When you were young and idealistic, you did not realize the ever present danger of malpractice suits.
According to a recent Physician Sense article titled “The Dos and Don’ts of Asset Protection for Doctors,” most doctors will be sued at some time if not already.
If you do it later, the court may rule against your actions as being fraudulent.
What should you do?
For starters, make sure you have malpractice insurance.
Many states require its doctors to carry this if they are going to practice in the state.
This insurance covers damages up to a certain amount.
You should also place money in protected accounts.
These include qualified retirement accounts like a 401(k) or profit-sharing accounts.
But laws differ by state.
For example, assets held jointly by spouses in Missouri are deemed to be held as tenants by the entirety.
In short, the law considers such assets to be owned 100% by each spouse.
A malpractice suit against the doctor spouse cannot reach the 100% interest of the non-doctor spouse.
In Kansas, your personal residence is considered your "homestead" and is protected, as is life insurance owned for at least one year.
You should also protect yourself from life issues outside of your line of work
You should have disability, auto, and homeowners insurance.
Do you have a personal "umbrella" insurance policy as part of your homeowners insurance?
If no, then you should.
Every day you work to preserve the lives of others.
Take the time now to protect you and your loved ones.
Reference: Physician Sense (August 7, 2019) “The Dos and Don’ts of Asset Protection for Doctors”