Best Asset Protection Strategies with Scott Royal Smith, Episode 102

John Casmon

5 years ago

As a real estate investor and asset protection attorney, Scott Royal Smith has seen how critical it is for investors to develop sound asset protection strategies. The best asset protection strategies provide a layer of anonymity and estate planning while deterring unsubstantiated litigation. And this wealth planning strategy isn’t reserved just for the rich as litigation attorneys will go after anyone with a net worth of $50,000 or more. On this episode, Scott shares his best asset protection strategies, including how to structure trusts and LLCs for optimal protection.

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Key Market Insights

Protects over $400 billion in assets
Insurance is the business of collecting premiums and denying coverage
First major client had 55 properties, gave Scott a check for $10k and asked him to figure it out
Who needs asset protection? Anyone with a net worth of $50k or more
Some people think you only need insurance, however if your net worth is more than $50k, that is not enough
Lawsuits don’t have anything to do with the truth – it’s a business to come after people they think have money
Protect assets by hiding them through trusts and LLCs
Want to look like you own no assets
Insurance companies deny claims all the time – they will cover accidents
Need to form a minimum of two companies – one holds assets, the other does business interactions
Important to move properties and get them protected
Transfer property from your name and into a land trust – this will not trigger the due on sale clause
Two types of trusts: revocable trust and irrevocable trust
The LLCs provide asset protection, the land trust provides anonymity
To create a proper LLC, you need an operating agreement, complete all yearly maintenance and compliance
At a minimum, create an LLC and hold the assets in the LLC
Performs twice annual estate planning reviews
Don’t own things, own the companies that own things
Living trust helps to avoid probate and keeps estate plan updated