What is Asset Protection Planning ?

Over the course of your life, you will (hopefully) amass what we call “assets” (aka stuff worth money). Some of those assets might be growth or income-producing assets, such as stocks or real estate.

How can my assets be taken away from me?

There are a couple of primary ways you can lose your assets 1) is by making really poor investment decisions where you lose money instead of making it

As related to real estate

Here is the basic scenario you want to avoid. You own all your rental property in your personal name, along with your other assets like your house, your stocks, your cash, etc.

You can get sued for anything it seems, and lawsuits are a primary way we can lose our assets. Here are two more areas in which you may be susceptible to lawsuits.

Other ways to lose your asset

In your personal life 

Largely this would include something “bad” happening at your residence, like your dog mauling the neighbor's kid. Or while driving your car, you hit and maim someone.

If you make your living as a freelancer, independent contractor, or own any kind of business, you are always more open to lawsuits.

In your business life 

What else do I need to know about real estate LLCs and asset protection?

Good question. While my nutshell statement is true, there are a few more things you might want to consider when deciding how to develop your asset protection plan.

When deciding if this asset protection strategy is right for you.

What states are the properties in, and what state do you live in? If they are not the same, your entity costs could go up even more because you may need to register the entity in the state of the property, as well as in your own state, and pay double tax.

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