Asset Protection plans... Joe, what is your opinion on this?

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#1

Originally Posted By: jwatts1
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Joe,


I have to say its Great that you are with us at NACHI. You have provided all of us excellent advice…


Here's my question -

On the topic of personal asset protection, what is your recommendation for us business owners/inspectors that want to protect our OWN homes and assets from lawsuits, other than having an extensive amount of E and O Insurance, which I do have.. My main concern is to protect my equity.

I have done so much research on the internet from different law firms, some say Living Trusts offer some protection, some say they DON'T... Its amazing the amount of information out there, and the variation in opinions among attorneys.

Should we as inspectors have asset protection plans in place? Such as Family Limited Partnerships, Residential Trusts, .... and so on, or is this just really a lot of hype? And is having E and O insurance and General Liability coverage usually sufficient to protect oneself in this line of business. I do not have employees and rely on myself.

I appreciate your time, if you could touch on this topic...
Justin.

#2

Originally Posted By: lkage
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That is a good question, Justin, considering some here have touted “Asset Protection for Physicians and High-Risk Business Owners” by Robert J. Mintz, ESQ.

#3

Originally Posted By: pehrenpreis
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It is a good read and free to boot!


Available from: Robert J. Mintz

#4

Originally Posted By: jferry
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jwatts1 wrote:
Joe,
I have to say its Great that you are with us at NACHI. You have provided all of us excellent advice....

Here's my question -

On the topic of personal asset protection, what is your recommendation for us business owners/inspectors that want to protect our OWN homes and assets from lawsuits, other than having an extensive amount of E and O Insurance, which I do have.. My main concern is to protect my equity.

I have done so much research on the internet from different law firms, some say Living Trusts offer some protection, some say they DON'T... Its amazing the amount of information out there, and the variation in opinions among attorneys.

Should we as inspectors have asset protection plans in place? Such as Family Limited Partnerships, Residential Trusts, .... and so on, or is this just really a lot of hype? And is having E and O insurance and General Liability coverage usually sufficient to protect oneself in this line of business. I do not have employees and rely on myself.

I appreciate your time, if you could touch on this topic...
Justin.



Justin -

I have attended a couple of seminars on these techniques. One of them was invitation only and there were about ten very well-heeled businessmen there. How I got invited remains a mystery.

The entire program was a infomercial for this law firm that had sponsored it and had all of the subtlety of a time-share presentation. The Family Limited Partnership was being huckstered mightily and my reaction at the time was that it held more negatives than the Estate of Ansel Adams and was preposterously complicated for the ordinary businessman.

If these sorts of schemes were the only way to protect your assets and tomorrow someone invented insurance, he would win the Nobel Prize.

Joe
#5

Originally Posted By: jferry
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A couple of other thoughts that have recently occurred to me:


1. These plans are heavily promoted by, well, by promoters. Why? Because they are expensive to set up and require continuing maintenance and vigilance to ever changing laws.

2. To shield your assets, you have to transfer them to another entity, essentially divest yourself of any ownership of them.

Query: What does every businessman need? Right, money!! Move to the head of the class. Ever try to borrow money without assets that can be attached in case you are unable to repay the money?

#6

Originally Posted By: phinsperger
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Ok Joe,


Lets say I transfer all of assets into my wifes name. If we were ever to split up, am I still entilted to 1/2?

#7

Originally Posted By: jferry
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phinsperger wrote:
Ok Joe,

Lets say I transfer all of assets into my wifes name. If we were ever to split up, am I still entilted to 1/2?


Good thing this is the members only section, ay, Paul?

I handled exactly one divorce in my legal career. When it was over, I told my wife "We're never getting divorced."

I'm no expert on property division in divorce but my suspicion is that 'gifts' are not community property, one more reason to keep your eyes open when considering some of these asset protection schemes.
#8

Originally Posted By: phinsperger
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eusa_think.gif I see

#9

Originally Posted By: rwand1
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I have heard that if your assets are in someone elses name such as your wifes and she uses the company credit card for gas for pleasure, that is considered a no no? And can be used to show that the assets are mutual and that ruins the defence no assets? Or something like that.


Raymond Wand
Alton, ON

#10

Originally Posted By: jferry
This post was automatically imported from our archived forum.


rwand1 wrote:
I have heard that if your assets are in someone elses name such as your wifes and she uses the company credit card for gas for pleasure, that is considered a no no? And can be used to show that the assets are mutual and that ruins the defence no assets? Or something like that.

Raymond Wand
Alton, ON


Similarly, if you put your home in your wife's name and continue to live in it, guess what?