Manage risk by prudent planning

13 May

Have you ever wondered why the adage “an ounce of prevention is worth a pound of cure” has stood the test of time?  People use that adage consistently because it’s true.  Many legal problems that make their way to an attorney’s desk could have been dramatically reduced, or eliminated altogether, with prudent planning.

Whether it’s drafting your will or trust to avoid a contested probate, reviewing a lease or purchase agreement when buying or selling real estate, or reviewing and updating your business records to keep the liability protection strong, prudent planning is often less expensive and more effective than problem-solving once the problem has arisen.

In difficult economic times, it is quite typical to put off using an attorney for proactive planning, prudent decision-making, and risk management.  Too often, an individual or business contacts an attorney only once a dispute has arisen, such that the path is already fully or partially determined.

Recently, this author has seen an increase in scenarios where partner/shareholder disputes might have been eliminated or reduced by having a buy-sell agreement, and scenarios where real estate transactions gone awry could have been aided by a properly drafted purchase agreement or help from an attorney to review and understand what the documents say, before signing.

As you review your own individual and business scenarios, take a moment to consider whether you have been prudently planning to avoid problems, or whether you are just hoping problems don’t arise.  Nearly 10 times out of 10, the former strategy will prove much wiser, over time.

If you need to discuss your personal or business legal needs with an attorney, please feel free to visit the Thomsen & Nybeck website (www.tn-law.com) or call us directly.

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This blog entry is written by Brad Boyd, a Shareholder at Thomsen Nybeck. Brad is the chair of the firm’s Transactional Group, and his practice focuses primarily in Real Estate, Real Estate Brokerage, Business and Corporate law, and Wind Energy Law.  Brad provides legal advice, guidance, and representation related to risk management in a wide variety of real estate and business law matters.  He is counsel to the Minnesota Association of Realtors, many individual Realtors and brokerages, business clients and individuals.

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