A Physician’s Asset Protection Makeover

A Physician’s Asset Protection Makeover

Two commonly overlooked areas of most doctors’ legal and financial planning is their asset protection and risk management planning. As money comes in and doctors move from debt to the surplus and profit phases of their careers, issues like tax, investment, and estate planning will most often get addressed. Unfortunately, protecting that accumulated wealth, its sources, and reducing predictable risks are often overlooked. Now, let’s get to the case study. As a note, all non-material details have been changed to protect the client.

Before – “Letting It Ride”

Bill and Preeti Deutsch are a two-physician couple who have been married for several decades and have two children. Bill owns his medical practice with two partners and brings home just over $1million a year, while Preeti brings home about $325,000 annually from her hospital based specialty practice. The couple recently sold their home and purchased a new, bigger home for $1.8 million, having put about $600,000 down and financed the rest. The couple also owns a share of the LLC that owns Bill’s office building. The LLC has a positive cashflow from the rent received from the practice and two other tenants as well as shares in a separate S-corp. that owns an ambulatory surgery center (ASC) they invested $200,000 in, which produces a significant monthly income.

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