Protect Your Assets with Kimberly DeVries BHHS Utah Properties Jeff Teichert Lawyer - Ep 3

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28 Oct 2020

Watch The Full Episode Here a https 3A 2F 2Fhomemattersshow vidiozz com 2F a When you own real estate property it may be wise to protect your investment against legal action As long as a property is owned by an individual and legal action that is brought against this individual can threaten your investment For example if you have 4 rental properties that you own and you get in financial trouble after a medical emergency happens on one of the properties all your assets are at risk in a lawsuit may be brought against you Jeff suggests that you should protect yourself in this case by setting up separate legal entities for each property you own This way you protect the whole enterprise This way you're not exposed with all your assets you've worked a lifetime for to acquire In many cases a home is the biggest asset that you own If something happens to you like you needed medical care for which you were not insured Medicare could potentially take your house to pay for bills outstanding or even take ownership of your home when you pass away Or if you are self employed and you're getting sewed for mail practice you could potentially lose your investment in your home With the right legal structure around your property you can prevent this from happening From a legal perspective it very often depends on the situation on how to best protect your investments in your home real estate asset First your lawyer will need to understand what objective you have with your investment in your homes real estate investment Only after a full understanding of your objectives a legal structure can be set up If you own 4 apartments it may be wise to put seperate apartments in separate LLC Limited Liability Companies and or even add a Business Trust a fiduciary arrangement that allows a third party or trustee to hold assets on behalf of a beneficiary or beneficiaries You can use both an LLC and or a trust to protect your real estate assets An LLC is a legal entity that you register with the state which registration you have to renew every year A trust is a legal entity but it doesn't get registered The benefits of a trust arrangement is therefore that people cannot check public records to see any information about your finances You can set up your own trust arrangement using legalzoom com or other sites like that The risk you run is that although you have the legal papers done for you the transaction underlying the legal arrangements also need to happen accordingly Here it usually gets tricky and therefore Jeff advises to always use an expert legal counsel to help you out The cost to protect your real estate assets can vary from 3 000 to 5 000 for a typical transaction Only in extraordinary cases this may be a bit higher It s particularly important for business owners to protect their real estate and at the same time setup contracts within the asset protection structure to help them maximise their investment A lot of the time a business owner that has grown their business and is still operating on the original legal structure may be exposing him herself to unnecessary liability or not optimizing the business for asset protection Jeff recommends that if you are in this position you should obtain counsel and get this done as soon as possible before you regret it in the future If you would start structuring your assets when you are already looking at legal consequences you are likely already too late Website a https 3A 2F 2Fkimberlysellsut com a Facebook a https 3A 2F 2Fwww facebook com 2FHome-Matters-Show-611070969567878 a YouTube a https 3A 2F 2Fwww youtube com 2Fchannel 2FUCXqkONX4kXt0EZoYI66W5rg a