What is the potential liability of a motel owner who lives out of the country and is not a citizen of the US?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What is the potential liability of a motel owner who lives out of the country and is not a citizen of the US?
We are UK residents thinking of investing in a mini-motel room in the US. We will get the appropriate insurance. However, for example, if a claim was made and the insurer wouldn’t cover the claim for some reason would our assets in the UK be vulnerable or would it just be any assets in the US?
Asked on January 27, 2012 under Business Law, New York
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Good question. If you invest in a mini-motel in the United States where a lawsuit arises from an incident occurring at the unit you bought during your ownership of it and a judgment results against you where any policy of insurance does not afford complete coverage, all of your assets would be subject to the judgment and a levy, including those in the United Kingdom.
This is why you might consider creating a corporation or a limited liability company to hold title to the mini-motel that you are seeking to buy created under the laws of the state where the property is located. This would help create a form of insulation against any personal liability from any judgment arising from the ownership of the property.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.