The facts and fictions of asset protection with lawyer, Brian Bradley

what's going on everyone welcome to another episode of the remote real estate investor I'm Michael album and today I'm joined by Brian Bradley asset protection attorney and he's going to be dropping some knowledge about all the things we should be aware of as Real Estate Investors when it comes to protecting our assets so let's get into it Brian what's going on man thanks so much for taking the time to hang out with me today I really appreciate it yeah absolutely Mike thanks for having me on it's going to be an important topic a fun topic I'm gonna you know try to keep it fun and not legally dance and you know just like I'm not anyone's you know attorney here legal Guru so we're just gonna be talking generalities right all right I think we're going to learn a lot in this you know it's going to be a lot of fun and as you're building scaling making more money you know you're getting a bigger red button on you and so like this world of what we're going to be talking about asset protection is kind of a big deal there's just a lot of ways to skin a cat different layers different strategies for where you're at in your life so you know I think as we break these down hopefully I can you know make this make a little bit more sense for you and your listeners yes well thank you I am super excited to learn a lot because before we hit record here you and I were chatting about some of the topics we're gonna be covering today and I was like what is that totally brand new so I'm really excited from a self-serving perspective so give everyone the quick and dirty background who doesn't know Brian Bradley who you are where you come from and what is it you're doing real estate today yeah absolutely so you know I'm an asset protection attorney you know we're talking about it off recording like from Lake Tahoe so you know big snowboard ski you know ski bomb you know uh lake bomb uh right uh all right I got into asset protection from the litigation side of the law um I was selected to America's Best attorney list 2020 what 2021 2020 Super Lawyers Rising Star 2021 um 2015. my guess is that now that's not like an online survey you filled out to get that oh no and that's nothing to do with me that's literally just people that you whoop their butt up in court and then they recommend you or judges recommend you um and I have nothing to do with it and it's actually pretty you know I I appreciate even just the nomination let alone winning it you know to where I think they only say one percent of all attorneys in the nation even get nominated for those Awards let alone then you know one percent of those even get so you know picked as a winner and so you know yeah thanks yeah um and for me getting into you know asset protection which will Define what that is you know in in a minute like that'll be like I think our base starting point um I just I just got into this weird area of law because we want to like money I like investing I like you know not paying as much taxes as you know as I can um and as you grow you got to be smart with your money right and and who can take it from you and so as a trial lawyer starting out I just had so many clients who are being sued and their lives just turned completely upside down coming to me after they're already being sued and at that point you know you're just too far down the rabbit hole you know it's like going to get car insurance after you already got in an accident or you know home insurance after your house already you know caught on fire it's just it's not gonna happen and so I see a lot of people thinking that they don't need to do anything is another misconception you know it's kind of human nature right you know like I'm just gonna ride Lady Luck I'll deal with it when I when you know it hits me later on and that's just not how anything that needs to be proactive in the legal sense is is going to work like insurance or asset protection um wishful thinking is not a protection tool you know that's how you end up losing everything you know like go to Vegas go to the banks and hit the roulette table and see how long you're your wishful thinking is going to last for you right you know right or you know as you're leveling up people forget about this like as your wealth is leveling up you're leveling up you don't level up your protection you don't level up your insurance um yeah people go buy an umbrella policy but they don't realize well an umbrella policy is just like everything else right you know it just provides more excess and money to you know for coverage but it doesn't it still has the same Escape Clauses you know like there's no insurance in the world that's going to say okay hey if I go punch you in the face are you going to cover it for me no like they don't cover you for intentional wrongdoings or allegations of Fraud and intentional wrongs and um so that's how they have their escape Clauses out especially for very big cases you know if you're talking about like a million dollar or more lawsuit um a couple other big misconceptions that we need to address As We Lay this landscape is just you know the revocable living trust people think like oh yeah I have a trust right like you know they don't realize trust there's a lot of different types of trust um your family estate plan your revocable living trust they're not designed to protect you while you're living you know they don't have the the legal teeth to be able to um so once you pass they're only designed to avoid probate not protects you while you're living from lawsuits and then over the last five years I've noticed this massive misconception about the use of limited liability companies LLCs and they just think that they're like you know Silver Bullet Dracula Slayers and I'm like did you guys miss like first word first letter like limited I tell you in the game like whereas all where has this happened where does this come from like they're not hiding the fact they tell you like they titled it telling you limited liability so like now we have to re-educate people on this like yeah don't put everything in the world under one LLC otherwise if it gets pierced you're going to lose it on like what are you talking about um which will break that down you know in a little bit um and then the sad thing is like and I think it's worth explaining is if you just look around and you look at you know our legal system in the world we live in it's just broken it's a broken system you know and we're so happy Nirvana um and just to like kind of lay this framework down a little bit more um we're no longer about Justice we're about redistributing wealth from the haves which is you your listeners people trying to grow and accumulate more to the have-nots and over the last 40 50 years things that didn't happen in the past or that weren't allowed to happen in the past like contingency fee lawyers or Law Firm advertising they're commonplace and then this created a cultural shift of a predatory legal system that's no longer about justice so it's about profits now and then when you get in the world of high net worth and affluent families and wealth this level of protection you know now we have to deal with taking a macro economic more like a global look about what's going on and the big picture here is really that we have a Global Financial system that has structurally deep-rooted issues you know we have government-backed Fiat currencies that are now in question this is also including the US dollar so don't think like this because we're in the U.S we're exempt from all of this you know um monetary policy today you know the one that exists is you know inflate or die and then you got governments looking for deep and accessible pools of financing meaning our money you know the hard workers the people who are investing um along with financial repression monetary and economic manipulation so this just adds all the challenges that we have to deal with when we're looking to protect you know your assets and so asset protection is that modern best bet to level this playing field by using a lot of the tools and the combination of the tools that we're going to talk about today to make it very hard for you to be collected on and so what this is really about is just like a talk about giving you peace of mind lifestyle preservation and you know really just how collectible are you at the end of the day love it love it well I am all about doing things to help peace of mind and insulate ourselves from from The World At Large the suit Happy World At Large so help us understand Brian like what are some of the things when someone says asset protection to you like Brian I gotta protect my assets what does that mean to you what alarm bells are going off in your head yeah absolutely one is like do you understand the difference between tax mitigation and asset protection and I'm beginning this a lot you know um especially this last year obviously as we see what's going on you know what's in with inflation taxes and everything right now asset protection is not tax mitigation like that's your CPA and wealth manager's job if creating an asset protection plan or an asset protection trust or going offshore you know were to create tax Havens like one that's illegal it's fraud you know soil system won't work and then you go to jail for that type of stuff so don't do that is what you're saying don't do that that's not what this is about so people always like oh I want to protect my assets and I don't want to pay taxes completely two different things the asset protection plan is to protect your assets from predatory lawsuits and litigation not saying I want to not pay taxes that's tax mitigation talk to your CPA and wealth managers first lock down your assets from lawsuits because if you get sued and lose everything what's your Miracle working CPA going to be able to do for you if you have nothing for them to work on so order of operation protects your assets then let them work through the system that's created to actually like mitigate you know forced appreciation all those wonderful things that they do cost sake analysis yeah but Brian to that to that point really quick I'm just curious like do you work with a lot of CPAs because I can see I can Envision a scenario in which the legal side of things is super buttoned up super tight but maybe isn't very tax efficient and so my guess is there's probably a happy medium or some input that a CPA or wealth manager can can inject into the situation to help make both things as tight as possible correct you gotta you know the issue generally is people don't involve their lawyers until later on down the line and it creates a lot of problems um so for example a lot of CPAs will set up s-corps for investors especially Real Estate Investors for some reason and great for tax purposes horrible for litigation and I get this call a lot you know and most of my clients are calling with like 50 100 million dollars of real estate all stuffed in One S Corp okay great again for tax mitigation horrible for let's say you get sued and now your S Corp and all the shares get Frozen and cease there's nothing I can do for you at that point I can't move assets out and then even if I wanted and you realize like oh my God I have so many pieces of property under one corporation like this is very risky I need to start you know diversifying out and pulling these assets out you're stuck you're not going to be able to and I just had this call yesterday with a potential client um the reason is when you all the benefits of the S Corp right you know deferred Taxation and all this stuff you're kicking the can down the road once you start taking the assets out you have to pay the money back and so people don't generally have millions of dollars of sitting in their bank account saying like Okay hey I feel like you know taking all the assets out of my S Corp now now I'm going to go and pay the piper and the IRS um so because you don't have that money sitting around to pay the IRS and the taxes we can't move the assets for you and I'm not going to force you to go you know and have the IRS coming after you to collect on you and move the assets out anyways because now you're just creating a bad situation for the client so the the lesson here to learn is if you're thinking of investing you need to talk to both the lawyer and the CPA because a lot of CPAs they shouldn't be giving you legal advice they're not lawyers and they're not going to understand the aspect of well what happens actually in court with escorts and C Corps um when it comes to litigation and why we don't want to use those to protect your assets so we have to all talk together the problem is I get this all I get the mess after the fact right afterwards um and so when done right really the modern you know estate planning is asset protection what we're doing is creating legal barriers between your assets and your potential creditor the person suing you the person trying to come after your money before it's needed and that's it you know it's like a safe for your gold or your guns or your valuables anything of value you know you want to put behind a legal barrier and out of your personal name so that is not easily attached with a lien or reached and so like just like the rich I really like the Tony Robbins saying success leaves Clues the rich don't own things in their personal names their businesses do their trusts do they just get the beneficial use and enjoyment out of them while separating out that legal liability and we do that through just like different tools and mechanisms that we have kind of like key Concepts and road maps like llc's limited Partnerships and Trust got it okay and so when real estate investor comes to you they're just getting started they are moist clay you can totally mold them they don't already have a bunch of issues what is your go-to like ideal scenario for asset protection yeah so they're I mean you're just starting out you're a green horn like really it's just going to be an LLC in insurance and that's where you're going to go okay um and as you think about how to use these systems and how to grow within them okay I want you and your listeners to think about winter okay like we were talking about this before we started recording like I'm from Lake Tahoe snow cold snowboarding skiing I lived in Michigan freezing cold Arctic you know minus 40 degree weather for a while yeah well I'm in Portland damp cold you got to really layer up and so the first entry layer is is your base layer when you're getting dressed it's going to sit on your skin this is the equivalent of an LLC in insurance this is you know when you're just starting out investing and you have zero to three units or you know zero to three properties your exposed net worth gen generally is at like 250 000 net or below and then as you grow and you add more assets and you hit around that four unit or four property Mark you could be starting to invest in a couple different states as well you know you have now around like 500 to 700 000 exposed Nets um what you need is a mid layer which is usually a little bit thicker is going to be made out of like a Merino wool sweater or for you ladies a car and again this is your management company like a limited partnership um and I I can break down that later on if we have time and then when you hit around that one million net worth Mark you know you're going to want a water shell waterproof layer this keeps you nice and dry and warm when the weather is really bad you know this is your doomsday lawsuit protection layer um it's going to be an asset protection trust and specifically for our clients we use a hybrid trust which is combining an offshore trust and domesticating it through the IRS um so when a client comes to me I was I realistically know you want four things you know you one you're going to want an effective plan two you're going to want to control your plan three you want reasonable and sustainable cost you know depending on what layer you're at it's going to be individual for the client profile and then four you want a plan that's going to be easy to maintain compliance on with the IRS like I can create the strongest thing in the world for you but if you're not going to be maintaining it and you don't want to do the IRS compliance with it eventually you're just going to stop doing it and the whole system falls apart so as you go through the valuation process and you're talking to different attorneys and you're vetting the process just remember the acronym ECCC Effectiveness control cost and compliance and as long as you can start checking up all those boxes you know you're gonna have a really good system um if you want I can break down the first layer if you want to try to kind of go there like llc's or just really wherever you feel like directing this yeah so I think our listeners probably have a good handle on llc's but I would love if you would walk us through what this hybrid trust is because it's not something that I'm I'm familiar with I never heard of before so yeah and you know I think the reason why is like not many people focus on asset protection at a high level you know I think of it as like Insurance a lot of people one they're not only purely asset protection attorneys right they're generally like business attorneys who do some asset protection or their real estate you know attorneys who do a little bit and they take continuing legal education course learn about llc's and it kind of stops there and like insurance they kind of try to cast a large net Nationwide well what's one thing you can cast Nationwide in LLC and so I kind of think that's why like the base layer knowledge kind of stops there because not many people just focus on you know it's very very strong protection this comes with asset protection trust so it's this final layer that bad weather you know the outer shell waterproof layer is this asset protection trust it's going to be really the heart and soul of the system especially when you have over 1 million exposed net worth wealth and what I mean exposed is like your 401k is exempt so I don't include that in a net worth evaluation because it's already a recent protected some states like if you're a Florida resident we have a very strong homestead exemption of 100 of your um of your primary residence so I would take that out of the equation too depending on the state you're in in the homestead so what we're looking at is exposed unprotected net you know equity and wealth all right um the great thing about trust is that they can be sculpted to fit how you need them and they can morph as you need them without dealing with funding issues that you're going to fall into with llc's and other other business entities that get their their protection pierced meaning now you're going to be held personally liable so I just love trust and having a trust at the very top of the planning is very powerful and then this is where picking the proper jurisdiction for a trust really comes into play the standard 101 trust that I'm sure like everybody's familiar with you know came started in the 60s it's the family revocable living trust so you know like when trust you know trust don't die so then when you do you act and you fund your trust which a lot of people forget to do like oh I created my estate plan and then they never transfer title into it remember on the fund the trust if it's just you know irrevocable living trust the benefit it is when you pass you don't have to go through probate you can just skip the court system in Probate and it changed the landscape of estate planning then you have what are called land trusts for Real Estate you know you hold your land and then you connect them to an LLC but land trusts don't have any protection in and of themselves they're only as strong as the LLC that they're connected to you know so they're just a privacy mechanism not a protection mechanism okay from there you have higher levels of trust they're called asset protection trust and I really want to spend the time you know with this and break down the three different types you know and after this I think you and probably 99 of your listeners are going to know more than 99 of all the attorneys out there about ask the protection trust love it they came yeah they came about in the early 1980s you know and so an asset protection trust is what's called a self-settled spend Thrift Trust all self-settled means is that you created it for yourself you know there for you by you as your own beneficiary and they have very important spendthrift Provisions in them so this lets you protect your assets while you're actually living you know from creditors trying to sue you um from not having to relinquish control of your assets the difference is that they allow you to protect your assets not just for your grandkids but for yourself which you weren't allowed to do in the past and then like I said you're probably familiar with another type of self-settled trust the revocable living trust um they're the same and that they're self-settled credit for you by you the difference is that with an asset protection version of this trust it includes these critical Provisions called spendthrift provisions and what spent Thrift Provisions are is they are Provisions that allow you to protect your assets from the creditors um they're the actual teeth behind it and for those to work the trust them has to be not revocable but irrevocable so it's a very different type of trust you know just like chocolate and vanilla both ice cream just different types of ice cream yeah now you know this is where the fun really starts to actually happen there's two major School of thoughts here you can go International meaning offshore another country jurisdiction you know you hear about Cook Islands Cayman Islands Belize in the Bahamas or domestically here in the U.S you know Nevada Delaware Wyoming Texas um so you can set them up here in the United States and you know if you don't mind I think a great way to talk about it is just kind of talk about it through historical context because and I think if you understand the foundations of both offshore and domestic then you understand the principles of how we combine them together and why you want to yeah let's do it yeah all right cool so um again you really have these three options right you can establish them offshore you can establish them domestically and then we can hybrid them out like a hybrid car take the Best of Both Worlds put them together so from the historical concept the offshore trust actually came first in 1984 when the famous Cook Islands they created the first asset protection Trust um I like and choose to Cook Islands if and one is applicable just because it literally offers the best home court advantage and why it's the best is because asset protection is just what these trusts and the Cook Islands um were specifically drafted for and the power here is they have this wonderful word called statutory non-recognition of any other jurisdictional court orders in the world including the United States and so what this means is that if you have a judgment against you in the United States and then you took it down to the Cook Islands your U.S judgment is literally worthless it literally has no value whatsoever statutorily the Cook Islands they're prohibited from recognizing it even from their own Constitution and so if somebody wants to sue your trust and it has a Cook Islands you know claws in it so it's a Cook Islands trust they would have to start their case all over from scratch the person suing you they're going to have to prove their case beyond the Reasonable Doubt this is the murder standard the highest legal standard in the world the 99 sure stand not that you know 51 percent preponderance of the evidence I'm not sure we don't know what happened but we don't like the way they look right now so like it's just let's just give it to them um you know you can't get a contingency fee attorney to represent you because they're just not allowed down there it's unethical in the Cook Islands just like it used to be unethical here in the United States but then that got changed in the 60s the claim meaning the lawsuit you know it's not amendable so what this means is that it can't be changed or amended after the discovery process starts like we can do here in the United States like we can literally just say okay I'm suing you for this dig around start Discovery then completely change what we're suing before because we we started using as a fishing Expedition the person suing you yeah no I mean this is just like standard trial tactics is like okay hey let me just flood you with Discovery and like start poking around and say oh hey we didn't even know this was right here now I'm going to add this to the complaint and sue you now for this looks like a better cause of action anyways um can't do that down there but we can do it here all the time in the U.S so it sounds like I need to go move to the Cook Islands not well here maybe not right because you know there's there's cons to things I'll get to the cons in a minute okay um so the person's suing you they're about to front the entire court costs find a judge from New Zealand and if you lose you pay you know and I honestly think this is one of the worst things that we don't have here in the United States like the loser doesn't need to pay the legal fees and the cost of the winner so if you get sued for Something Completely bogus I mean a frivolous lawsuit and you spend 200 000 defending yourself on legal fees then the judge finally is like this is ridiculous I'm throwing this case out you're still out 200 000 bucks you know the person who sued you they're not going to be getting the bill for that because our legal system in the United States they just that would discourage lawsuits and our legal system is run by trial lawyers who don't want to discourage lawsuits and there's only one year statute of limitations so if you go back to those four things I mentioned right remember like Effectiveness cost control compliance I mean Effectiveness 5 out of 5 Stars nothing really nothing B statutory non-recognition so what about about the other ones right you know control cost and compliance this is kind of his Kryptonite you know these are the drawbacks you know if if you're going to be purely foreign like a purely foreign trust you have a lot more IRS reporting compliance and disclosure so you have these things called IRS forms 3520s 3520as um what this is is a full balance sheet disclosure of everything the trust owns and sometimes even the entire trust agreement to be disclosed and submitted to the IRS and it is expensive for these IRS forms to be done every year also you're going to have facta compliance because you're going to have a foreign bank account at that time um and of course with these trusts to work you're going to be out of control of the trust that's why they work so good that's why they're you know the creme de La Creme um and clients are just not comfortable with this and so while we literally have the most effective trust in the world by far it's not something that I generally start with I probably only say like one percent of my clients I I'll go to a purely foreign trust with um which then brings us right to the second option okay we're not going to be going forward what about these domestic trusts yeah they came about 10 years later down the road of all places Alaska started it out and then not to be outdone obviously you're gonna be like well hey we're Wyoming in Nevada and Delaware like this is what we're known for so we're jumping on the gravy train right and then about 19 other states now have created some form of asset protection self-settled you know trust statutes so what you're seeing is the state starting to jump on board seeing yeah a legal system is a threat and things have to get done to protect your assets and so as the protection the United States is is very is very important to understand is valid um it's just the concept is like how you go about doing it is very important the issue with the purely foreign I mean the purely domestic asset protection trust is that you know we live in the United States of States of America we have a Constitution Article Force section one for Faith and Credit Clause what this provides and means is that every state has to Grant the full faith and credit to the judicial proceedings of every other state what this is means what it's telling you is that for example Nevada can pass and has passed an asset protection statute okay but it cannot ignore a California or a Washington or like another State's court orders so where the Cook Islands can literally just throw that California judgment in the trash Nevada can't do that Nevada has to respect it constitutionally and even litigate it and then you have cores that are just simply ignoring the choice of law Clause so I mean like you really have like baitly versus mortis and Ray hubber kill cover Steelman dover's Dale all great facts all great cases they should have won those cases and judges literally just use their superpower public policy we're ignoring the you know choice of law Clause trust is breached breach means loss of assets that's just completely unacceptable and so because of the case law that we're seeing I'm not a big fan of a purely domestic asset protection trust or anything purely domestic without something offshore built into it this is why I prefer the hybrid version called like we just call it a bridge trust but it's really just like a hybrid um hybrid trust think of them like a hybrid car hours okay what we're doing just combining the best of both and then making a better product and so um these trusts have been around for almost three decades so they're not you know the new lady to the dance they've been around for about 30 years now and at the end of the day what you're doing is taking a fully registered foreign cook Island offshore asset protection trust but all that 40 Years of solid case law um again so it's fully registered offshore from the day we created with the offshore trustee they're there in standby just in case you need them and then we build a bridge back to the IRS for IRS classification so the IRS is literally taking this foreign trust and then they're classifying it as a domestic U.S trust by complying with USC section 7701 it's called the court test control test and so because of that bridge as long as we have our compliance in place we stay classified domestically and what this does is that the trust is now going to be cheaper to create so generally a purely foreign trust is going to cost like 45 50 even 60 000 plus 12 000 a year to maintain very expensive a hybrid trust is going to be cheaper you're generally going to be talking about you know 23 to 30 000 to set up a hybrid trust plus no IRS tax filings whatsoever while you're domestic because it's classified as a domestic U.S grantors trust so you have no more IRS tax filings unless God forbid we have to break that bridge and now you also get the power of the offshore trust if and when we need it it's in our toolbox now just like a contractor who says like okay hey I don't need to use all my tools today but I'm going to need them possibly at some point so now I can use them as I need them versus coming to me later on after the fact oh my God Brian I mow somebody over with my car like can you help me you know like I want that foreign trust well no sorry it's after the fact I can't do it now but if we had the hybrid I could have engaged it um so that would be like during a state address we would break the bridge stop being an IRS compliance you are what you are a foreign trust until that point you want to be classified domestically so the hybrid trust is just very very effective you make control of your assets you may contain control the TR the trust right up into that doomsday scenario where you don't want to be in control of it anymore um you know maintenance and compliance with the IRS very simple so at that point you've now checked off all the boxes affecting this cost control and compliance check check check check check and so this is where you know for our clients we generally are starting with these hybrid trusts wow this is wild this is super cool and so are you thinking that most folks that are in that kind of million dollars of exposed net worth this is where that starts to make sense that's exactly like so our our main client profile that comes in you would think they'd be like you know tens of millions of dollars for us like realistically I would say 75 of our clients generally are around that 1.2 million uh exposed net um some high risk probably like a Doctor Surgeon lawyer or just straight Real Estate Investors some of my favorite clients nurses firefighters cops who self-funded their retirement through cash flowing properties and now they're about to retire and they realize like I can't lose all of this now because this is literally my nest egg and my legacy yeah um they need to lock it down and so you you generally see the the average client profile is like 1.2 to 2 million of exposed net with some risk and it makes sense at that point yeah get the LLC get the limited partnership get the trust for like thirty thousand dollars lock down a million plus us and then sleep well at night that's when the investment kind of makes sense for this type of protection yeah that makes total sense and what would you say because I would imagine after listening to this folks might go to other attorneys attorneys they work with mention this type of hybrid trust and they might be told nah you don't need it LLC is good enough I mean what's the cut I know we've talked about kind of a counter argument but how does that conversation get had well most of the time I would say like the one the estate planning attorney um they won't know about this because they're knowledge base you know is just not going to be around let alone foreign trust I mean there's not that many people who even know like that much detail about how a foreign trust works let alone using the incorrect domestic asset protection trust you know how many times I have California residents using a Nevada asset protection trust and the person who set it up for them you know like the the lawyer has no idea like okay what about this case kilkiver Steelman 2012. California case that said hey you're a California resident we don't recognize asset protection trust because we don't have the stats shoots here so your Nevada asset protection trust in sorry it's worthless it's not good it's not going to work you know so unless you go to an actual specialist and say hey here's the case law here's what's going to happen down the Run most people don't have that level of Education because they're not in that world they don't exist in in it um so I feel bad for the clients because where's the knowledge come from you think you're going to an attorney who will specialize in this but you're not taught this in law school you're not taught taught this for the bar exam um so how you develop this level of knowledge is really is just did you get into the right group of people and were you passionate about it enough to like transition your practice into it um that's why I do these talks is just to educate people and you know just the the base thing of like why not just an LLC they're disregarded entities for tax purposes so if they're disregarded for taxes that means it's disregarded to you for lawsuits and liability meaning you're pierced um if you're using them for Real Estate they're not businesses they're holding companies which means the number one argument that will win and Pierce that every time is well your honor that this is an actual business it's an extension of Michael it's just a holding company um boom you're pierced funding issues bad accounting systems like there's four ways to pierce that bill right there and I don't even have to think part about it um yeah charging or charging order protection I mean like what state do I go set these things up in you know how many times I hear people like oh I'll just go create a Wyoming LLC are you a resident of Wyoming is the asset in Wyoming and if the answer is no to either one of those you just tried to buy another State's jurisdiction that you have no connection to try bringing another State's laws to like California another state that you're not connected to and there's no reason to you're going to get laughed out of court like it's just you can't go buy other states more beneficial laws and bring them you know to another state that you have no that has no jurisdictional connection to it um and then anonymity is the other like really like Flavor of the last like two years is like oh create this Anonymous Delaware or Wyoming trust and goes to lawsuit right yeah well that's not how these That's not how anonymity works but that's how it's being sold by you know Law Firm salesmen and promoters um yeah create this and get a really crazy operating agreement and then next thing you know like you're never gonna have to show up in court I'm sorry you have a personal agent of service for these out-of-state law firms their sole job like let's say Mike here is my you know personal agent of service he's gonna get my service and it's gonna say hey Brian here's your service guess what dude you just got drunk you gotta show up in court in court now at amenities done at that point so the only way that anonymity works is you show up to court a judge is going to say hey you're getting sued for a million bucks here's your you know asset disclosure list tell me everything that you own because we didn't know what can be collected on or not at that point an amenity or a quote-unquote air quotes secrecy is now up to you so you're going to decide am I going to lie under oath and hope to God I don't get you know my my operating agreement will hold up and commit perjury in court or do I just disclose it so like you're the weak Link at that point and then if you lie and commit perjury under oath you're going to jail on top of losing your assets so it makes more sense just to say hey create a proper asset protection plan LLC in the state that it's at layered up into a management company once you hit the net worth put in the trust and then sleep well at night because at the end of the day I don't care if you lose your lawsuit I care about if you're collectible or not you know like you can lose the 10 50 million dollar case I just if the asset protection trust set up strong and in the right jurisdictions with the proper exit strategies doesn't mean that you can be collected on and then it lets me settle a case for a penny on the dollar dang this is nuts right this is like or this is Earth shattering stuff we gotta have you back on and talk more about this but I want to be very respectful of your time get you out of here for people that have a similar response to me or like holy crap I gotta call this guy Brian immediately learn more about this reach out for your services what's the best way for folks to get in touch get a hold of you yeah um one one great resource is jump on my website www.btbellegal.com I use it more as an educational resource with a lot of case Law client studies um I just want you to be educated at the end of the day like listen this here's the case law like like what lawyers should know about especially trial lawyers that's why I'm a good trial lawyer I tell stories through case law um and another great way just through my email you know Brian b-r-i-a-n-b-t-blegal.com I do I'll get you know free 30-minute consultation whether we're a great fit or not like we'll figure that out over the phone I would just rather have people have an educated decision and then they can like go shop around love it love it well hey man thanks again for coming on really appreciate the time and we'll definitely be in touch yeah for sure thanks brother all right everyone that was our episode a big thank you to Brian for coming on talking about a lot of things that we've never heard before on the show and definitely bringing up some excellent counterpoints to be thinking about as always if you enjoyed the episode feel free to leave us a rating or review wherever it is to get your episode and we look forward to seeing you on the next one happy investing

Channel: Roofstock

Views: 1,238

Keywords: asset protection, legal facts and fiction, real estate asset protection, llc, real estate llc, investing in real estate, llc myths, protect your assets, legal protection, real estate protection, real estate assets

Id: bxIFSrMSSW0

Length: 35min 43sec (2143 seconds)

Published: Tue Oct 11 2022