Economic Downturn? Do these 4 Things

24 Nov 2022 · 1 min

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In this video, Jerry Taylor warns that when the economy turns sideways, individuals should proactively protect their personal and business assets through four key actions. First, remove personal ownership of the primary residence by placing it in an appropriate trust (land, residence, or irrevocable) to shield it from creditors and judgments. Second, transfer bank accounts and investment holdings out of one’s name to further insulate assets. Third, pause major business expansion or large asset purchases for six to twelve months, allowing time to assess economic conditions before committing capital. Fourth, restructure rental properties by moving ownership into an LLC or specialized trust, protecting against potential tenant lawsuits and creditor claims. These steps aim to minimize exposure to financial and legal risks during an economic downturn.

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When the economy starts going sideways, there are 4 things you need to be thinking about to take care of yourself, your assets, and your business. The first thing is your home. Get that home out of your name. Depending on the state you're in, you need to get it into a land trust, a residence trust, or just an irrevocable trust where you no longer own the home, the trust owns the home, and it's protected from creditors. Then if things get bad and a judgment is entered against you, they can't get you the house. Number 2, your bank accounts, your investments. Again, get those things out of your name. Number 3, if you own a business, This is not the time to be ramping up your business and buying lots of assets. I'm talking about maybe 6 months to a year to see what happens with the economy, to see when we're gonna come out of it. And number 4 would be rental properties. Again, if those are in your name, you've got to get them out. In an economic downturn, this is the time that a tenant might be suing you as the landlord. You want to put those into an LLC or a particular kind of trust. So these are 4 areas you need to be paying close attention to, to minimize a risk of a bad outcome when the economy is in downtime.