Monday, March 21, 2016

Motivation for Building a “McMansion”

In the article one weird reason why doctors buy bigger homes than lawyers, it explains a seemingly common practice in locations in certain tax protected states that physicians purchase more expensive homes to protect their assets from malpractice liability.

The article states that doctors buy bigger homes than lawyers in general.  Protection of assets by buying an expensive dwelling in place like Florida and Texas is a well-known strategy that many people in the top 5% use very creatively.  There are multiple homes sitting on the coastline with few regular dwellers. A former commissioner of baseball used this strategy quite effectively. 
The sad part is that people have to go to such lengths in our litigious society to protect their lifetime assets and protect the future of their families.

A seemingly simple solution for the medical profession would be to radically alter the malpractice system from a personal fault system to a reasonable no-fault system that compensates the injured appropriately. It would also punish egregious repeated behavior by some practitioners through appropriate sanctions. Other countries like New Zealand have accomplished this with some success.
The ultimate solution is not to get sued either individually or in a group. Unfortunately, the odds are against you. On the other hand, a nice house on the beach is nicer than living in a tent.

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