Comments on: Two-way asset protection with an LLC? http://www.protect-assets-strategy.com/asset-protection/two-way-asset-protection-with-an-llc Asset Protection for a Safe Retirement Wed, 08 Sep 2010 09:03:59 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: talltex_austin http://www.protect-assets-strategy.com/asset-protection/two-way-asset-protection-with-an-llc/comment-page-1#comment-4379 talltex_austin Sat, 19 Dec 2009 16:17:59 +0000 http://www.protect-assets-strategy.com/asset-protection/two-way-asset-protection-with-an-llc#comment-4379 1.Depends on what state your rental house is located in. 2.Does your State provide “Charging Order” protection for assets owned by an LLC? If not like CA, then you would be advised to place risky assets such as a rental property into a Limited Partnership (LP or Family-LP) If your State does provide Charging Order Protection for assets in an LLC then yes, it makes sense. However, you need to ask your lender if there is a current mortgage on the property and explain to them you are transferring the title for Asset Protection. If you do not you risk having the loan or note accelerated and called due. Garn St. Germaine Act of 1982, If they do not allow that, you may still with more complex use of placing rental unit into a Land Trust then into an entity such as a LP or LLC with "Charging Order" protection. 3.Does your State have Series LLC? Only about 8 States do, if so you can create one LLC with different series contained within the one LLC. Each asset, such as rental property, bank account, IRA, gun collection, farm, ranch, auto collection, etc. would be segregated by seperate series but all within a single LLC. If not, you would want to segregate each asset you want to protect away from any other asset, thus you may have to create multiple legal entities to segregate each asset you want to protect from Predators. You would want to work with a Asset Protection attorney and a good tax-planning Income Tax professional to develope a strategy for your family. If you cause a car-wreck and hurt or kill anyone they can pursue a tort claim against you and if they WIN a money judgment they can pursue your assets that are "naked" or not owned within a strong asset protection entity such as a LP or LLC (in States that have charging order protection). Note: Many estate planning attorneys advise clients to hold title to all assets within their Revocable Intervivos(Living) Trust. This is poor asset protection strategy because a "Living Trust" is a disregarded entity and would not protect your assets from creditors.<br><b>References : </b><br> 1.Depends on what state your rental house is located in.
2.Does your State provide “Charging Order” protection for assets owned by an LLC? If not like CA, then you would be advised to place risky assets such as a rental property into a Limited Partnership (LP or Family-LP) If your State does provide Charging Order Protection for assets in an LLC then yes, it makes sense. However, you need to ask your lender if there is a current mortgage on the property and explain to them you are transferring the title for Asset Protection. If you do not you risk having the loan or note accelerated and called due. Garn St. Germaine Act of 1982, If they do not allow that, you may still with more complex use of placing rental unit into a Land Trust then into an entity such as a LP or LLC with "Charging Order" protection.
3.Does your State have Series LLC? Only about 8 States do, if so you can create one LLC with different series contained within the one LLC. Each asset, such as rental property, bank account, IRA, gun collection, farm, ranch, auto collection, etc. would be segregated by seperate series but all within a single LLC. If not, you would want to segregate each asset you want to protect away from any other asset, thus you may have to create multiple legal entities to segregate each asset you want to protect from Predators. You would want to work with a Asset Protection attorney and a good tax-planning Income Tax professional to develope a strategy for your family.

If you cause a car-wreck and hurt or kill anyone they can pursue a tort claim against you and if they WIN a money judgment they can pursue your assets that are "naked" or not owned within a strong asset protection entity such as a LP or LLC (in States that have charging order protection). Note: Many estate planning attorneys advise clients to hold title to all assets within their Revocable Intervivos(Living) Trust. This is poor asset protection strategy because a "Living Trust" is a disregarded entity and would not protect your assets from creditors.
References :

]]> By: KlemKiddleHopper http://www.protect-assets-strategy.com/asset-protection/two-way-asset-protection-with-an-llc/comment-page-1#comment-4378 KlemKiddleHopper Sat, 19 Dec 2009 15:31:59 +0000 http://www.protect-assets-strategy.com/asset-protection/two-way-asset-protection-with-an-llc#comment-4378 If it pertains to only you as the owner and landlord of the property, it would be a thin vail of deceit - you would have to re-deed the property to the LLC, a legal cost and if you were the principle of the LLC why wouldn't they sue both you and the LLC Just a point to consider as you can add as many defendants to a suit as you like and the court will eliminate those not directly affected.<br><b>References : </b><br> If it pertains to only you as the owner and landlord of the property, it would be a thin vail
of deceit – you would have to re-deed the property to the LLC, a legal cost and if you were
the principle of the LLC why wouldn’t they sue both you and the LLC

Just a point to consider as you can add as many defendants to a suit as you like and
the court will eliminate those not directly affected.
References :

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