Protecting Your Assets from Creditors and Lawsuits by Author and Keynote Speaker Gus Fernandez

by admin on June 1, 2019

JUNE 2019

According to the U.S. Census Bureau, in the U.S. only 6% now have a net worth of over $100,000.  RichDog

New lawsuits are filed every 17 seconds says the U.S. Bar Association. So what’s the big deal about protecting your assets from creditors and lawsuits in the first place? Many asset protection attorneys (I’m not one) use the example of Elvis, who died with $300 million in assets, but no will, trust or protection–eventually his sole surviving heir (his daughter received only 10% or $30 million). The rest was lost to attorneys and lawsuits (surpirse). Compare Elvis with Nelson Bunker Hunt, who died with $2 billion in assets that he passed along to his heirs, but nothing in his name except an old pickup truck. He was well protected. Think about that, he only owned a pickup in his name, but controlled $2 billion in assets!

LAY OF THE LAND

The following is a layman and small business person’s approach to asset protection. I’m not an attorney or dispensing legal advice so if you’re in need, seek one out. Just make certain that they are versed and immersed in the topic with loads of clients and testimonials (the only lawyer’s we ever refer). To the meat. 
 
j0309599First off, what in the heck do we mean when we say ‘assets’?

The term ‘assets’ refers to just about anything you own or have an equity stake in. A simple fact of ownership is that if you have something worth getting, there is going to be the chance that someone will try to take it from you. The direct amount of risk to you in protecting your assets from creditors and lawsuits depends on their value and your particulars. A net worth of $100,000 is less vulnerable than a multi-million dollar plus portfolio. A celebrity, public figure or a physician may need a more complicated plan than a lower profile ‘Joe lunchbucket’ type.

Here are a few insider tips garnered from seasoned strategists that will benefit any protection plan to safeguard your assets from creditors and lawsuits. Remember, everything here is purely from a business perspective–we’re not attorneys or ever profess to be–so please, only and always seek competent legal advice. Meanwhile, here are some points to consider in any gameplan.

1~ KEEP YOUR NOSE CLEAN. The first line of defense is to take steps to reduce the chances of someone having a reason to sue you. For example, when you own rental property, your tenant most likely doesn’t own a home or have substantial assets. So, when someone is injured in your tenant’s residence, the deepest pocket (maybe the ONLY pocket) most likely will be yours. Your strategy: Don’t give anyone a reason to sue you in the first place!

2~ BUILD A READY RESERVE OF TALENTED ADVISORS. A vital part of business and real estate is being able to make a decision and close the deal quickly. This is exactly why some investors get into costly battles. None of us have the time to do every bit of research necessary or check out the consequences of each move. When a crisis arises, having a phone number and point person at your finger tips for immediate advice is a key part of protecting your assets from creditors and lawsuits (and taming your sanity).

By the way, we’ve got you covered with an around the clock nationwide non-commissioned staff of professional wealth specialists ready to answer all your financial questions, plus map out a comprehensive strategy for success should you be in the market. Simply shoot us an email at info@finances4today.com and we’ll put you in touch with a pro. Real estate investors, small business people and non-profits alike find our seasoned coaching Power Team–an invaluable and affordable one stop resource.

3~ GET IT OUT OF YOUR NAME Utilizing legitimate asset protection tools such as Corporations and Limited Liability Companies (LLC) allow you to ‘CONTROL’ your assets without actually ‘OWNING’ them. Transferring your real estate properties into another entity creates another ‘layer’ of protection between you and the public and makes it tougher to get you into court. Think of it as a ‘firewall’ for your finances.

Again, our Wealth Benefit Team, can do much of the research to help you find the right entity fit. Drop us a note for specifics.

4~ PREPARE FOR THE WORST – ACTIVATE YOUR PLAN BEFORE THE FIRST SIGN OF TROUBLE. ‘WHEN’ you do it is just as important as ‘WHAT’ you do. For example, to bulletproof your assets from litigators, you need to structure your purchases (property, education, equipment, travel, etc.) and how you hold them (personal, business, living trusts, LLC’s, corporations, etc.) in specific ways, always legal and above board. Another reason to only seek competent legal advice. You have to have these protections in place BEFORE there’s ever signs of trouble.

5~ ALWAYS AVOID FRAUDULENT TRANSFERS OR ANYTHING THAT SIMPLY SOUNDS TO GOOD TO BE TRUE. Again, IF someone makes it past your other layers of protection and gets you into court ”The exact date a property is transferred into another name is a vital key to your defense. For example, suppose you have all your properties in your name. You get into a sticky situation and someone threatens to sue you. Flight response is you ‘THEN’ run out and transfer all your assets into an LLC or to a family member. Wrong play. If you do end up in court, a judge would most likely view that as a fraudulent transfer or so the attorneys tell us.

tiger poisedSimply put, predators are lurking. If it looks like you transferred the asset just to keep someone from collecting against it, the asset most likely will revert back to being held in your name. Ultimately, any rock solid plan in protecting your assets from creditors and lawsuits is always an extension of a competent estate plan.

6~ START WITH THE BASICS.  Minimally start an LLC as you draw your financial ‘line in the sand’.  You’re right, it’s not the most sophisticated tool in your arsenal, but it’s a starting point to prime the entity pump and at least get yourself pointed in the right direction.

If you’re feeling a bit in over your head or if you’re simply interested in a top legal eagle who will do the ‘heavy lifting’ for you, we’ve got a point person in mind. Drop us a note at info@finances4today.com and we’ll send you a referral or two of the top asset protection attorneys in the country, someone we trust with an impeccable track record.

OPPORTUNITY KNOCKS

How To Make MoneySpeaking of protection, if you are ambitious and interested in joining a nationwide team of A-listers offering financial products that in turn will raise your game and significantly impact others lives, drop me a line IMMEDIATELY to gus@finances4today.com. Especially if you are a licensed life agent or willing to get your license. We have more leads than agents (NO COLD CALLING) and are hiring right now nationwide!

Discover how to earn $50,000 to $100,000+ a year and more full or part time ensuring secure futures for individuals and families.  We’ve already helped hundreds of people transition into this rewarding career…and we want to help YOU get started in as little as 7 days. Best part: NO previous experience or education is required…and we’ll train you for FREE!  And again, NO COLD CALLING or badgering family and friends. Fast pay, no quotas. More exclusive leads than agents!  AND A+ carriers to boot!

Go to: www.seegus.com, watch the quick clip and fill out the form and/or drop me a line at gus@finances4today.com (serious inquires ONLY) for more info. The fortune is always in the follow up and follow through. That’s one of the key traits we look for as to who makes the cut.

I’m Gus Fernandez and I’m fiercely dedicated to multiplying your savings and earnings!

Gus Fernandez, aka the Wealth Doc
bit.ly/whylistentogus

Please be sure to read our disclaimer prior to acting on any information you find on this website There is never any substitute for personalized professional advice.

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