Question 4. As a licensed physician, I am very concerned about the rising costs of malpractice insurance as well as high litigation awards. How can I protect myself?

Answer.   This question is much more complex than it may appear. There are several questions which must be answered before a reasonably viable answer can be provided. For example: (a) in which state do you reside; (b) are you a general practitioner or a high-risk specialist (i.e., orthopedic surgeon, gynecologist or obstetrician, etc.); (c) are you a sole practitioner or part of a professional corporation; (d) what type of assets to you own and what is their current gross and net worth; (e) what is your annual income; (f) what is the amount of your life insurance coverage and are you the owner of the policy(s); (g) what is your age; and (h) what is your family situation (e.g., married, single, divorced, children, etc.)

With this information we can better recommend an appropriate structure. Such a structure might consist of one or more Limited Liability Companies ("LLC's") or Family Limited Partnerships ("FLP's"), Revocable Living Trusts, Irrevocable Life Insurance Trusts; domestic or offshore asset protection trusts, etc.