Disclaimer: This is based on my personal and professional experience. It’s still best to consult with an attorney or your accountant for further clarification.
Today, let’s talk about your properties and what you can do to protect them. Some of you might have recently acquired a property or invested in one but don’t really know how to protect the investment long term. It’s hard to not have assurance on the protection of an investment you spent thousands or millions of dollars on. It’s best that hear from personal and professional experiences on how these people were able to go about protecting their investment.
With my years of experience, I’ve found that the best way to protect your properties is to put it under a Trust. I’ve done this many times that at this point, it only takes me a few minutes to put one property on a Trust.
It works like this: I pick a trustee and you pick anyone that you trust. Then, there will be two important documents that go on the Trust. These are the Trust Certificate and the Declaration of the Trust.
This has a number of advantages. For instance, someone sues you for an accident which involves your house. They’ll see that a Trust owns it and they’ll pull out more information from the Trust.
However, they’ll see that the Trust doesn’t own anything else since what I do is I put each property on separate Trusts which is under its own name.
Most of the time, the attorney would back out when they see that the Trust only has one property. They know how tedious it is to go through the process, especially those owned by LOC.
Another advantage is if ever you get married to someone who owes child support or taxes, their financial obligations will attach with the house. But when your house is under a Trust, no one can touch it.
For me, this is a good thing to have. It reassures you and protects your rights as a property owner or heir. It could be a challenge for you to take the first step, but with the right attitude and goal, you should be able to find a way on how to protect your investments.
Once again, it’s important that you consult with your attorney and accountant for further knowledge.