Lee Philips here.
I want to talk to single people for a minute.
Everybody comes to me that's single and says okay
you've talked about asset protection
I'm a single person
how do I protect my assets?
and I have to say
as a matter of fact as a single person you've got a lot fewer opportunities
or techniques
that you can use in order to do your asset protection.
Basically asset protection boils down to
I don't own it you can't get it
Nyah
Well, as a single
who else do we have own it?
If I'm married and have kids and all that sort of stuff
then I can isolate assets with my spouse
I can isolate assets with my children
so that they get the benefit of it
the object there is to make it so they get the benefit but can't control it
so I can isolate assets
under different ownership
but
if I'm a single
I don't have all of those options.
So what does a single do?
Your first line of defense in asset protection
and I've done another YouTube video on this one
is insurance.
Maybe you're gonna have to spend a little bit more in insurance
and the fact of the matter is
99% of the cases that go to court
they settle for the insurance
and if you've got reasonable insurance
they're usually happy to settle for the reasonable insurance
and the insurance company will take care of
it and you don't have to hire the lawyer
the insurance company hires the lawyer
and it works out pretty good.
But let's assume you still have assets that you want to protect.
the best way to do it would probably be
using an LLC
because an LLC will protect you
from what happens in the company
that's the charging order protection
the company could be a real estate investment prop
it could protect you from what happens inside the rental unit to the tenant
additionally though
it protects the assets in the LLC
from what happens to you
that's called the charging order protection and we have lots of YouTubes on these sorts of things
but that gives you kind of a pocket
that you kind of don't own
because in the charging order protection yeah you own the company but
they can't get to the assets of the company.
So it gives you a pocket
which isn't total transfer of assets away from you
because you still kind of own it
but there are a lot of legal things that say I don't really own it
this company owns it and you can't get to the company through me.
If it's an LLC.
Now if it's corporation,
I can get your stock, I can get to your company,
I can get your assets in the company.
But an LLC is different
so if I have assets
and I need a business reason basically for doing this but
managing the real estate through the LLC is certainly an appropriate thing to do
owning different assets in different pockets
for asset protection
that might not be a business reason for setting up the LLC
but dividing it into different estates and having different people be my partner so to speak
and in some states in order to get the charging order protection
you do need more than a single member
in an LLC
and yes we have those YouTube videos as well
so you can check that out
that other person
could be your mom, your dad, your brother, your uncle, somebody
your significant other
whoever it is
they can have a small interest
in your LLC and then you have a multiple member LLC
and even in the states that don't have charging order protection for
single member LLC's, well I now have a multiple member LLC
you've got to treat the guy as a member and we
go through all of that in the single versus multiple member youtube videos
but that gives you a means of protecting assets, the LLC.
You can't really use trusts
because they're gonna be revocable trusts
so they don't have any asset protection.
The corporation isn't going to give your assets any protection.
It could protect you from what happens
as a result of somebody using your assets or something
but it's not going to protect your assets
so a single has substantially fewer
possibilities for asset protection than a couple
standard husband-wife
him and her, her, her her, him him
doesn't matter
we've got somebody else that we can give
an asset to
and protect it from what happens
to the doctor
or the guy in the in the relationship that has the big asset protection problem or the liability
so as a single you're limited
as to what you can do
insurance and probably the LLC are your two biggest possibilities.
Lee Phillips talking on how singles protect their assets.