Shaky Economy? Do These Things #assetprotectionplanning

4 Apr 2023 · 1 min

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1:00

In this concise financial advisory video, the speaker outlines four critical asset‑protection actions to take when the economy turns volatile. First, remove personal ownership of your primary residence by placing it into an appropriate trust (land, residence, or irrevocable) so that creditors cannot seize the home after a judgment. Second, transfer bank accounts and investment holdings out of your personal name to shield them from claims. Third, pause business expansion and large asset purchases for roughly six to twelve months while the economic outlook stabilizes, avoiding over‑exposure. Fourth, move any rental properties out of personal ownership into an LLC or specialized trust to limit landlord liability, especially as tenants may sue during downturns. These steps aim to preserve personal wealth, protect business interests, and reduce legal exposure during economic downturns.

Chapters

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 going to 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.