No one enters into real estate business thinking of earning a lot of money in some time and then giving it to lawyers. But this might happen if you don't take the precautionary steps right from the beginning.
An average American gets sued seven time in his life time and there are chances to get sued even more. If someone slips on the steps of your property and gets injured, later founds that he cant work anymore. He will find a lawyer to take on his case to get him something out of you.
If you haven't taken the proper steps, you will have a lot to lose and it won't take more time for a lawyer to find the properties you own if you have tied up all together. If you are in such a situation, you need to make it difficult for a lawyer to find you and sue. You need to add as many layers of complication to protect yourself.
Land Trust:
It's a big risk to keep the title investment property in your own name even if you own just one property. Instead, you can put each property in separate land trusts. Since each property has its own trust, it won't show your name and the properties you own.
Trustee:
Beneficiary will be the property owner and trustee will be the manager of the trust. In certain situations, the beneficiary's name can be disclosed unless the trustee is an attorney. In such cases, trustees can claim attorney-client privilege and your name need not be disclosed.
The corporation or LLC:
It would be better if you are not listed as the beneficiary and instead you can form a LLC or corporation and have your business entity listed as a beneficiary. You can even file those papers in Nevada which has the best asset protection laws than any other state and hence it will take more time for a lawyer to find you. Its always better to have an attorney and consult with him during issues. These tips would really be helpful not in building wealth but in keeping it safe.
An average American gets sued seven time in his life time and there are chances to get sued even more. If someone slips on the steps of your property and gets injured, later founds that he cant work anymore. He will find a lawyer to take on his case to get him something out of you.
If you haven't taken the proper steps, you will have a lot to lose and it won't take more time for a lawyer to find the properties you own if you have tied up all together. If you are in such a situation, you need to make it difficult for a lawyer to find you and sue. You need to add as many layers of complication to protect yourself.
Land Trust:
It's a big risk to keep the title investment property in your own name even if you own just one property. Instead, you can put each property in separate land trusts. Since each property has its own trust, it won't show your name and the properties you own.
Trustee:
Beneficiary will be the property owner and trustee will be the manager of the trust. In certain situations, the beneficiary's name can be disclosed unless the trustee is an attorney. In such cases, trustees can claim attorney-client privilege and your name need not be disclosed.
The corporation or LLC:
It would be better if you are not listed as the beneficiary and instead you can form a LLC or corporation and have your business entity listed as a beneficiary. You can even file those papers in Nevada which has the best asset protection laws than any other state and hence it will take more time for a lawyer to find you. Its always better to have an attorney and consult with him during issues. These tips would really be helpful not in building wealth but in keeping it safe.
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