Protecting cash assets from law suits?

[spartana]

Deleted

[Blueskies123]

An umbrella policy is the only legal way I can think of, you might have to shop around for another company to sell you a policy.  It could be expensive.
Depending upon the state 401K plans might have a bit more legal protection

[Fuzz]

The correct answer is don't worry about this too much. The world is not full of people trying to sue you, and I say this as a lawyer that sues people.

If you're really worried or have a good reason to think you're at risk to be sued (hey, I've got that swimming pool next to the elementary school and the fence has a hole next in it that I patched with an empty refrigerator that is a good place for hide and seek), then maybe (1) stop doing whatever people will sue you for, or (2) start thinking about a trust. Remember if you did anything really bad, a clever lawyer might be able to get at your assets in a trust anyway.

Unless you have millions of dollars, a trust is probably not appropriate for you. But a lawyer will certainly take your money to talk about your options--this is just a random guy on the Internet!

[chucklesmcgee]

Probably no reason to worry. If you don't have a home, a dog or a physical business, only way I see you really harming someone is in your car. Odds of that are pretty small, but it seems like you're covered against that as well.

[Lyngi]

I happen to have a trust.  I was trying to keep my life insurance secure for my kids if something happened to me.   Someone was also being irresponsible with his driving and etoh intake.  The attorney mentioned that the trust protects assets from lawsuits (except for health care costs and taxes).  However, I should not put the automobiles into the trust, they could be a way around the trust.  My cars are beaters anyway.  Not worth bothering with.
    **this information is not legal advice**  consult an attorney for information specific to your situation

[Left]

renters insurance is cheap, could you rent one of those storage units and put car in it? so you have renters and car insurance for 2 policies?

[mjs111]

[Don't know any safe (i.e. insured) short term investment that are flexible besides cash like CDs. Although if anyone has suggestions I'm all ears!

I wouldn't fool with anything fancy. If you're going to need the cash in 1-2 years just keep it in cash.

If you have no fixed address and are living out of hotels, etc. while you slow travel, on the road driving through unfamiliar territory, your primary liability will be driving-related.  You won't have any property back home someone could wander onto and get hurt, right?  Couldn't you just boost your auto liability coverage up to $1 million-ish, or whatever makes you feel comfortable? 

The other liabilities personal umbrella covers (libel, slander, false arrest) are rare occurrences compared to property and driving-related liabilities.


Mike

[mjs111]

Yeah, shop around.  My insurer gave me the option of really high auto liability coverage or personal umbrella laying on top of both my auto and renter's insurance agreement. If State Farm has a cap at $500k it should be straightforward to find another insurer who will play ball.

Mike

[DoubleDown]

I believe my $1 million umbrella policy at Geico is $120/year, plus $10/year for each rental house as a rider (that pays above and beyond the $1 million if something happened at a rental house). This is on top of the liability insurance already provided through home ownership and auto, if an accident happened with those. All said, it ends up being a couple of million dollars of coverage for only around $140/year for the added umbrella policy plus two rental house riders.

[bacchi]

I just priced an umbrella policy with Geico. It came to about $120/yr as well but the downside is that I couldn't leave the house for more than a month at a time. Since we're also going to be slow traveling, a month is too short.

[DeepEllumStache]

You'll be renting, can you get a small renter's policy in place of the home insurance?