Kapur, a successful software developer, was selling his business for several million dollars. As is common in such sales, he had to make representations and warranties about the quality of the software. As is also common (more than 45% of the time), the buyer ended up suing the seller for breach of warranty.
Knowing that this was a possibility, Kapur put the proceeds of the sale into an asset protection trust. A year later, when the suit came, his assets were out of the reach of the creditor.
Bottom line
Simple…Anybody selling a business should have an asset protection plan.
