What can you lose?

What can you lose if you don’t have an asset protection strategy?

Transcript:

Colin:               Hey.

Shreya:             Welcome.

Colin:               Welcome to the Lawyer-Human Daily.

Shreya:             Daily. It’s Shreya.

Colin:               Ish.

Shreya:             Oh Daily-ish.

Colin:               Yeah.

Shreya:             I didn’t know what I was being cued for.

Colin:               I am the Colin, that is the Shreya.

Shreya:             It is I, the Shreya.

Colin:               Today, first of all, is Shreya’s birthday.

Shreya:             What? You mentioned it. I thought we weren’t going to mention it.

Colin:               So, happy birthday, Shreya.

Shreya:             Thank you.

Colin:               That is your present.

Shreya:             Yay.

Colin:               A shout out from me, on social media. Today we’re talking about, what can you lose. What can you lose if you don’t have an asset protection strategy?

Shreya:             Yeah. Is it french fries?

Colin:               If you have no money, you can’t get french fries. So, yeah, you can lose your french fries, ice cream.

Shreya:             Your shirt. The shirt off your back?

Colin:               You might as well lose your shirt if you don’t have a plan. But for reals, I have no shortage of people I speak with who are shocked to learn that they can lose their primary residence.

Shreya:             What?

Colin:               I know. Just because you ran somebody over. All right, that’s a joke. Come on, now.

Shreya:             Right.

Colin:               That’s a serious thing. But there’s non serious things, like losing a million dollars because your dog barks too much.

Shreya:             Oh yeah. There is a lawsuit.

Colin:               Yeah. I exaggerated, it’s 500 thousand. But, anyway.

Shreya:             Yeah.

Colin:               You could lose your primary residence for that.

Shreya:             Tell us about this lawsuit, though. Give us a little lowdown about it.

Colin:               Maybe, maybe in a bit. You’ve got an appointment in 10 minutes. So, we can’t get down with that. Too much. So, things you can lose.

Shreya:             Okay.

Colin:               Your primary residence. There’s a few states that protect your primary residence, like Texas and Florida.

Shreya:             Texas.

Colin:               Yeah. You can’t lose your home there. Washington, California. All these other place, if you’ve got a valuable home, you can lose it to a creditor.

Shreya:             Yeah. Only a certain amount of your home or equity in your home is protected.

Colin:               Exactly. 125 thousand, here in Washington, which won’t get you anything these days in Seattle.

Shreya:             Yeah.

Colin:               You can use-

Shreya:             Maybe one of those tents the homeless people live in.

Colin:               A tiny home. Actually, I think tiny homes are more than that.

Shreya:             Yeah, I think tiny homes are more than that.

Colin:               Yeah. You can lose your brokerage accounts. You can lose shares of your business or stocks you own, your LLC, you got a single member LLC.

Shreya:             You could lose the whole thing, potentially.

Colin:               That’s gone, and everything in it.

Shreya:             If it’s multi-member, the distributions from it.

Colin:               You could lose the distributions, savings, checkings … checkings. Checking accounts. What else is on the board, there?

Shreya:             That’s it, you got it all.

Colin:               Retirement accounts.

Shreya:             Oh yeah, you didn’t mention that.

Colin:               You can lose retirement accounts in some places, like Wyoming. Gosh, they’re terrible. They don’t let you keep anything.

Shreya:             Really?

Colin:               Yeah, big shocker, huh?

Shreya:             That is a big shocker.

Colin:               Yeah. Yeah, so there’s a lot you can lose, unless you have a plan in place ahead of time.

Shreya:             Well, I sure hope that people get a plan in place.

Colin:               I know, right?

Shreya:             And get more educated.

Colin:               Yeah. Because you don’t want to lose your stuff. I mean, how long have you worked to get the things that you got? You could just lose them like that.

Shreya:             For something dumb, like a dog barking.

Colin:               Exactly. So, get yourself a strategy and maybe keep your stuff if something bad happens to you. What do you think?

Shreya:             I like it.

Colin:               Okay. You want to do a little … You want to do that thing today?

Shreya:             What thing?

Colin:               If you found this helpful …

Shreya:             Oh, yeah. If you found this helpful, share this with your friends or hit Like, or both.

Colin:               Yeah. Or throw a comment down below. We’d love to hear from you.

Shreya:             It’s very exciting to know that we have more than one listener/follower.

Colin:               Thank you. Thank you. And you could also wish Shreya a happy birthday.

Shreya:             Yes. You may do that.

Colin:               She would appreciate that. All right. See you all.

Shreya:             Bye.