ONCE upon a time (cue happily ever after music), there was a Bachelor named Juan Pablo, who wanted to protect his love – the most beautiful of all of the reality show contestants in the land. So he got on one knee, and told her that he “liked her a lot,” and proposed to “go get a burger.” ..if you just heard the record scratch to a halt, it’s because this is not your story-book-happy-ending. Instead, Juan Problematic’s proposal went something like this:
“I have a ring here in my pocket, and I’m not going to use it. I’m not 100 percent sure that I want to propose to you, but at the same time, I’m 100 percent sure I don’t want to let you go. I like you a lot.” WINK-WINK. “A lot.”
While millions sat on their couches in disbelief of the major glitch in the Bachelor fairytale, Mr. Not-so-Prince-Charming should get credit for one thing: he gets to keep the lady, without the risk associated with a proposal.
Whether in the storybooks, or good ol’ reality, the happy ending remains the same: you want to enjoy the benefits of life, without the risk of loss. The same is true with protecting your assets. The following LLC plan is among the many strategies that can allow you to enjoy the benefits of your assets, without putting your name on it (or a ring on it).
LLC Based Juan Pablo Asset Protection Plan:
Much like Juan Pablo’s situation, an LLC allows you to use and control an asset, without titling it in your name. Rather, it will be owned by the LLC or LLP. Therefore, by separating your assets into LLC’s, you are safeguarding them from being pulled into a lawsuit brought against you, as they are owned by the LLC.
An LLC is a “Limited Liability Company.” It provides the desirable liability features of a corporation, without all of the extra hassle (paperwork, etc). Lets say you have a boat. So you give it a clever name (e.g. Juan’s Problemo), and put it in an LLC. A judgment against you is not valid against the LLC and the asset it holds (the boat). Furthermore, lets say you have an investment property (a high risk lawsuit property), and a tenant injures themselves on the property, and commences a lawsuit. If organized correctly, they can only sue the LLC alone. Your home and other assets (bank account, etc.) may not be touched, because you do not own the property, thus you are not personally liable. It’s like being a stockholder in a corporation.
Due to the fact that there are several requirements to properly forming an LLC, you will want to seek an attorney (that has a thorough understanding of such asset protection) to assist you in ensuring that the LLC is valid; otherwise, your safeguarding efforts will be futile. Also, keep in mind, the timing of the asset transfer cannot be done to actively avoid a present creditor, as it may be considered a “fraudulent conveyance.” Therefore, it is important to partake in these asset protection strategies prior to any legal or financial problems.
By utilizing estate-planning techniques, you can protect yourself and your family from unnecessary hassles, while safeguarding your assets. With the help of an estate-planning attorney, there are a variety of tools that can be customized to your goals, and implemented to ensure that you get the assets, without risking your name – Juan Pablo style.
For more information on successful Florida estate planning and asset protection techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation.
It’s a Wild world. Are you protected?SM