John Casmon

How to Use Trusts and LLCs to Protect Your Assets with Brian T. Bradley, Episode 171

Asset protection is a key component of creating and preserving wealth, yet many struggle to understand which strategies are right for them. LLCs, trusts and bridge trusts are three key entities that can help investors protect their hard-earned assets. I spoke to attorney, Brian T. Bradley to discuss these strategies in more detail and learn more about the benefits of each. In the discussion, he shares who should use LLCs and trusts, why insurance does not provide sufficient protection and covers frequently asked questions he receives.

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Key Insights

Real estate is the most ligated area of law
Protecting assets is about peace of mind to maintain lifestyle, and capital preservation
Asset protection is not just for the rich, it’s for anyone with assets
The ones starting out are going to make the most mistakes
Put assets in an LLC and not in your personal name
Create two LLCs to separate ownership from use and enjoyment
Insurance industry is trying to collect premiums, not pay out claims
They will pay out small claims, but larger payouts are challenged and force you to sue the insurance company for claims
Legal and Practical Authority – a judge can do whatever they want
Asset Management Limited Partnership – simplifies LLCs and consolidates tax returns
Trusts can be set up in the US or off-shore
Only 17 states have domestic asset protection trusts
Bridge trusts combine the best of US and offshore trusts
Bridge trust is an irrevocable tax-neutral grantor trust
First layer is LLC, next layer is Asset Management Limited Partnership, final layer is Asset Protection Bridge Trust
A trust is a separate entity that can own assets for a beneficiary
Asset protection is not about hiding assets or tax avoidance