What's up guys, in this video, I'm going to teach you a technique
to take your anonymity with your limited liability
companies to a whole nother level.
All right. Let's get started.
So here's the deal.
When it comes to asset protection and creating an anonymity structure,
which, you know, if you've watched my other videos, I am a strong proponent
of ensuring that people don't know what I have, that when I set up businesses,
I don't want a creditor to be able to say, oh, Clint's got 30 limited
liability companies because my name's plastered all over them.
I want to keep things as private as possible.
Now, I've talked about strategies on my channel where you use a Wyoming
holding company to own your state specific LLC.
And when you create those state specific, limited liability companies,
you make that Wyoming LLC, the member manager.
Now it works really well for an overall anonymity structure,
but there are some issues with that
that any creative person may not be able to find you.
But when you're using that strategy, they could get a sense for
how many assets are actually held by that Wyoming
Limited Liability Company because it appears on several LLC.
Now, if you're sitting there
scratching your head going, What the hell was he talking about?
Let me just show you what I'm referring to. Let's go over the board.
Let's assume that we created several LLC is
like this.
And so all of these limited liability companies are Colorado LLC.
So I create all these Colorado LLC and I set them up as member, managed LLC.
So they're all owned by this Wyoming LLC right here.
So everything here from these
Colorado LLC is if you're to look
at the Secretary of state, you say, All right, who owns
Colorado LLC, number one, it's going to point to the Wyoming LLC.
All right. Simple strategy.
If you watch my videos, you know, I talk about this all the time.
And then,
of course, you're down here as the member and manager of this Wyoming LLC.
So they don't see past this with this type of structure.
Meaning, if somebody is looking here,
the only thing that's going to point them to is this entity here.
So if they look at the Colorado LLC, number one, they see the Wyoming LLC.
Now, the purpose of anonymity is to keep your name off of these structures
so people don't know that Clint or John or Karen
or whoever, they have all these assets, so they can't take it back to you.
Your tenants can't tie it back to you.
But here's where this type of planning has one weakness,
and that is when you structure it this way, right?
If I looked at this LLC, let's
assume that I represent someone that's injured on this property
and or maybe it's different that maybe
it's a situation where it's a discrimination suit.
Maybe because you didn't rent the property, your property manager
didn't rent the property to an individual.
So they're asserting that there's discrimination there.
Whatever they're trying to do to shake you down.
They look at this limited liability company here.
They're going to see Blue Box LLC as its member. Now,
knowing that
the Blue Box is a member of this LLC, they might do this.
Take this company here, this name, Blue Box, and run a search in Colorado
to see how many other entities Blue Box is appears on.
So what they would find is that Blue
Box is a member of this entity and blue box is a member of this entity.
If you had three more, all of those would pop up.
So I don't see this person down here.
I don't see the owner.
But I do know this, that this one LLC
is an active real estate investor in Colorado
because of all the different limited liability company that owns
now, generally speaking and LLC,
the way it works is that if there's a liability
brought against this tenant lawsuit, it should stay contained
inside of that structure. That's why we set these up.
But maybe you didn't do something right.
And there's an opportunity now for this attorney
to pierce the veil of this LLC.
That means they can break apart
the LLC and go after the actual owner of that company.
Now, one of the things about asset protection, what we do with anonymity
is we want people to think that, hey, take the policy limits and don't
go any further because there's no assets there to collect against.
In this case, what you're going to find if someone's looking at this,
they're going to say, Yeah, there's definite assets there because this LLC
is owned by this LLC and this LLC owns these two and then these two LLC.
This has a house worth 500,000.
This has one worth 750.
There is assets there.
So an attorney might think, all right, I want to take this on.
I want to push the envelope, see if I can pierce the veil of this company,
get down and be here.
They can create havoc in this person's life.
All right.
So if you want to take your anonymity to a different level
and you're concerned about this or you've thought about this, this technique
I'm about to share with you right now is a way to do that, to cut off
someone from looking at this LLC and seeing your holding company.
And it's really simple.
It doesn't require you set up
any additional limited liability companies to do this.
What I'm referring to here is what we call a personal property trust.
I'm just going to call a p, p t a personal property trust.
Now I'll put a link in the notes to a video on personal property
trust that I've cut to you. Just go there, check on that back.
If you look right down here, we're going to put right in the video itself.
Right down here in the video, you can click on this link.
It'll take you to that
video as well on p t so you understand what I'm referring to here.
But our personal property trust, it's just a trust that you create on your own.
It's a five page agreement, seven page agreement, and all it is
is a simple trust that's designed to provide anonymity.
And here's what we do when I go to create my Colorado Limited
Liability Company here, I set up a Colorado LLC.
I am going to
create a personal property trust and I'll just call it this one.
We're going to we're going to call this the Black
Dog Trust again.
I'm going to call it the Black Dog Trust.
So I'm going to set up the Black Dog Trust.
I'm going to fill out this little trust agreement.
We create these all the times for our clients in certain situations.
I'm going to create the Black Dog Trust and I'm going to make
the LLC.
I'm going to have the LLC owned by the Black Dog Trust.
So the member manager of my Colorado LLC
will be the Black Dog Trust and then the Black Dog Trust.
So the trust you have to have a beneficiary that is the owner.
So when I create my trust, the beneficiary of the Black Dog Trust
is going to be my Wyoming LLC.
So I'm adding this additional step right here.
Now what I said is, you don't have to file this.
These are free to create meaning it doesn't create any expense.
You don't have to get a bank account set up for it.
All you do is just create the trust.
You sign it, and now you've got an entity that can be
the member manager of this LLC.
So every time I create another
limited liability company, I'm going to do the same thing.
So here's Colorado LLC
number two.
Now I'm not going to take number two and put it in the Black Dog Trust because
now I'm back to the same position I was before.
That is, everything will flow down to here in a creditor of LLC.
Number one is going to say, all right, LLC, number one is owned by the Black Dog
Trust and Black Dog Trust owns LLC two, three and four.
So. So what do you think we need to do? Hmm?
I know. Create another trust.
So I'll take this trust.
The Black Dog trust.
I'll keep it all the same.
Same beneficiary, same everything.
But I'm just going to change the name on it.
So I'm going to create a new trust to set this one up.
And I'm going to call this one the Red Cat Trust.
All right.
And that's going to be the member manager of that LLC right there.
So I got Red Cat Trust, Black Dog Trust over here.
And so when someone looks at this LLC
to see who's in charge of it, it points them right to this trust.
It doesn't point into this LLC,
doesn't point him this doesn't point him to this document as well.
Now you're saying, well, what about the tax implications?
No tax implications.
What does this do to my structure?
It does nothing.
It's just an extra layer that you put in so people couldn't associate
all of your real estate activities back to this company.
And I think in situations, this is something you ought to explore
with your planning, especially if you're flipping property
and you're using separate LLC.
You don't want to see that all flows back to the same entity because somebody
could try to collapse that name all the entities in a potential lawsuit
saying there's a pattern of behavior here and attorneys are creative
in the way they go after individuals because they want to apply pressure.
They want you to spend money so you'll settle to meet their demands.
What I'm looking to do with my structuring is I want to take that away from them.
I wanted them to look at it and say, Hey, I'm going to take the policy limits
because there's nothing else here to go after.
So using a personal property trust.
All right. Personal
property trust is the
easy way to give yourself a next level
of asset protection with your overall planning.
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And if you're interested about asset protection, you'd like to come out
or you'd like to attend one of my live tax and asset protection events.
I have a link down below in the show notes where you are
invited to come to this event.
No cost a one day event.
I teach it about every other Saturday.
I'm going to cover everything there is to know about limited liability
companies, corporations, land trusts as they pertain to real estate investing.
I'm to show you deep strategies to show you how to get your assets protected.
My partner, Toby Mathis, will talk about tax planning for real estate investors,
but more importantly, what's so unique about this event
is that when you're there, if you've got questions,
we've got answers, because I'm bringing a team of attorneys
and tax professionals with me to these Zoom events
where you can type in your questions and get your specific questions
answered as it pertains to you when it comes to planning.
I hope to see you there.