You can avoid lawsuits entirely by not owning things directly in your name. People who own rental property, brokerage accounts, etc. in their personal names are a favorite target for lawyers looking to sue.
Colin Ley is an asset protection attorney and the creator of the PREP Trust® and Better LLC™. He is also the co-founder of LayRoots (along with with partner in life & business – Shreya Ley)
Being successful in America makes you a target for bogus lawsuits from shameless lawyers. We created an effective, asset protection solution, so you don’t have to worry anymore, happily knowing your family’s future is protected. Get started now by scheduling a free, 30-minute call at livemorecarefree.com.
Transcript:
Howdy, friends Colin Ley at LayRoots, an asset protection law firm where we help protect people from stupid lawsuits. I want to talk today about stupid lawsuits and why it is so important to keep your name, your personal name, off of your valuable assets.
So I had a discussion today with someone who has creditors coming after them and they are working to basically seize their rental real estate to satisfy a debt.
Now this is a very stupid situation because the debt does not belong to this person. It belongs to somebody else. And the creditor that is coming after these properties is just assuming that those are assets that can be seized for this judgment.
Understanding how these creditors work. Basically once this judgment has come about, a creditor is going to basically run your name through an asset search. And this person’s name was run through an asset search and this building came up as an asset in the person’s name.
And this is a very important asset to the person. It’s a stream of rental income that the person lives off of basically. And so losing this asset would mean that that income is gone.
Now this is a stupid lawsuit. It’s going to go away, I imagine, once everything is sorted out. But this is gonna require a lot of time, a lot of stress and fear, hiring an attorney, maybe multiple attorneys going to court, digging out old paperwork from 20 years ago to prove that this asset of theirs, it’s not one that could be taken by this creditor.
And a lot of this or all of this, I imagine could have really easily been avoided had this property not been owned in the person’s name, not in their personal name. So if it was in a trust or if it was in a LLC that provided privacy of the ownership, this person who did this asset search probably would have never seen this property. It would have never popped up and they would have never moved forward.
So it would have just stopped all of this action in his tracks and not caused all of these headaches, expenses, worry. In this case, just having some privacy of ownership would have helped a lot, would have avoided this situation.
So if you have valuable assets in your personal name, you own them in your personal name, consider setting up an entity, either asset protection trust or LLCs that’s going to take those assets out of your personal name so that if somebody, either an attorney who might be digging around, they’re not going to find those assets.
And then this whole situation would have just not existed. If you found this helpful, please give it a like, and if you want to see more videos like this, make sure to subscribe up there.
Thanks a lot. Have a good one.
