Hi Mark Kohler here with another tax and legal tip talking about asset protection
What is real asset protection now? I just had a phone call today. I
Meet with clients all over the country every day
We have five attorneys in our office doing real consults
Answering questions about asset protection and implementing those strategies, and we get this question all the time
Oh, I need an LLC I need asset protection. Well. That's maybe not real asset protection
When you get down to the nuts and bolts, so let's go over it
So let's use that LLC as an example a lot of people say oh, I need asset protection
I'll set up my LLC so here's your LLC and a couple rental properties, and they think oh, I've done it
I've created an asset protection well, let's back up here to first because some people call me up and they're like oh
I went did the seminar and they told me I got to have my entity and set up in Nevada or Delaware a whole other
video please watch that one in my playlist
But they'll say I need asset protection. I'll say tell me about your assets. Well. I'm living in a van down by the river
Well, you don't need asset protection you need to go make money oh
Well, I thought I had to have asset protection first. No you're okay. No one really is coming after you right now
You don't have anything to get so go out and make some money
And I don't mean that to be rude to any of you that are thinking about asset protection
But if you don't have a lot of assets, then let's not stress about it right off the bat
So and I'll say what are your assets and they'll go oh well I have a couple rental properties, okay?
This is what I mean by assets. Oh, I've got a collector's car over here
I have this other
car paid for that's really really nice or I've got some investment accounts or I have an IRA or a 401k or I want a
Home or I have a vacation home, or I have some land that my grandma left me, okay
Those are assets and the more of these assets
You have the more protection we need to do
So where does that protection start now using the LLC as an example there is asset protection with an LLC
But what really what are you protecting here?
Well what you're protecting is you from a problem with your rentals right if something goes wrong here
They can't sue you pitching. You're protected corporate veil
I love LLC's and you're protected, but did you really protect your assets?
Yeah, I do protected these assets from something that could go wrong inside your rental property. You've got this barrier
But what happens if you're driving down the road you're texting and driving
And I know you do it you're texting and driving and you kill someone and now there's a cause of action a lawsuit against you
Can they get inside your LLC and take away your rentals in most states they can?
Anyways at work. I set up an LLC to protect my rentals. No no you set up an LLC to protect you from the rentals
Without additional planning we're not protecting the rentals from you. See this is inside
This is inside. This is outside protection, and I want to make sure that you have
protection
For your rentals from outside liabilities and protection for you from inside liability that could happen inside your LLC
This is the real asset protection. I'm talking about
We want to find out where your assets are and create a barrier
so if someone comes after you we might want to put your home in a certain type of
irrevocable or domestic asset protection trust adapt for another word we might want to put your
Second home or cabin or ranch or land in maybe some type of entity that gives you
outside protection and then IRAs and
401ks they have natural protection that comes with them you want to know what the rules are there and
homestead protection with your primary residence that could be a big deal depending on the state you live in or tenancy by the
Entirety see there's all these little asset protection techniques that they that a good planner will tailor to you
Be careful setting up an elaborate structure of LLC's thinking you're getting any asset protection
When you got a couple little meth labs as rental properties right let's let's not overdo it with structures
let's tailor our asset protection to the assets and
figure out where our liabilities may be coming from it could even be a teenage driver right or a
Profession where you're working on someone on an operating table?
I don't know so be careful when someone's selling asset protection, and they don't ask what are your assets?
And what are your liability risks?
An asset protection plan should be tailored to you
Watch out for these big flat fees five thousand ten thousand here and come to our bootcamp in Vegas
That's not asset protection get a second opinion at our law firm
We have attorneys helping clients every day with a real one-on-one consult for a half hour to an hour pay for an hour
To make sure you don't spend thousands on an asset protection plan that's all fluff, and it's not tailored to you
Thanks for watching, and if you love that video. I've got a lot more
Please subscribe to my channel and I shoot weekly videos that could help you in your business personal life and better
Live your American dream also check out my newsletter free newsletter every week with blog articles tips strategies tax deadlines
You'd love it. Also if you like social media
Please follow me on social media with some daily tips
And if you like to connect that way it can be a lot of fun
But finally please check out my tax and legal library
I have 50 plus videos on these topics and more where I pull out a whiteboard and breaking down hours and hours of helpful information
That can better help you with American people