When the Economy Tanks - Do This

1 Jan 2023 · 1 min

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In this advisory video, the speaker outlines four critical actions to protect oneself, one's assets, and one's business during an economic downturn. First, transfer ownership of your primary residence into a suitable trust—such as a land trust, residence trust, or irrevocable trust—so the property is owned by the trust and shielded from creditors in case of a judgment. Second, move bank accounts and investment holdings out of your personal name to reduce personal exposure. Third, if you own a business, avoid expanding or purchasing large assets for the next six to twelve months, waiting to see how the economy evolves before committing capital. Fourth, restructure any rental properties you own by placing them into an LLC or appropriate trust to limit landlord liability, especially as tenants may pursue legal action during a downturn. These steps collectively aim to minimize risk and preserve wealth when the economy contracts.

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 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.