Sometimes we get so busy in our business, we forget to pay attention to protecting what we are creating. I’m reminded of the story about one of our clients… He and his family amassed 140 single-family homes and two apartment complexes.
Everything was going great as they were buying lots of properties at great prices and receiving great income from their rent and rent to own residents.
Then one day a tenant who was being evicted decided to get a legal aid attorney and their lives changed forever.
This attorney went to public records and found everyone else they had ever evicted and created a class action lawsuit against them.
Before there was even a judgment, the tenants attorney motioned the court to place all of their assets into receivership.
Yes, that’s right, they lost their property and their income before the court even ruled for or against them.
Just imagine trying to defend the lawsuit when all of your income has been taken away.
Eventually, after spending over $500,000 in legal fees, they gave up and walked away. And, as you might have already guessed, the attorneys burned through the assets with legal fees and the 12 tenant plaintiffs got very little.
Oh, and of course they had an LLC.
They made the fatal mistake that most people do. They were protected – but their assets were not.
You see because of how they held title, it was very easy for the attorneys to identify all of their properties and seize them pre-judgment.
They had to start all over – from scratch. They are now definitely get the concept of trusts. They realize that if each of these properties had been in its own trust, then they would have been far safer.
Don’t fall into the trap this family did. It is your duty and responsibility to yourself and your family to do this and do it right.
And if you think ‘I’ll get an attorney to do this for me’ that’s another trap. They might be able to provide some generic paperwork, but I promise they will not understand the power and benefits of strategically designing the trust for maximum asset protection and estate planning.
The family said me…‘
if only we had this information and had implemented it, we would not have lost everything’
Don’t be like the 99% that have no clue about this.