Today, I’m gonna go over what happens to most people when they find themselves in financial trouble. Asset protection planning is always done best when the seas are calm, when nobodies after you. Unfortunately a lot of people wait until the last minute. When they’ve been sued, threatened or, you know, they’ve waited until they need to hire somebody like me. When danger is imminent it gets more expensive and more difficult. So always do it when the financial seas are calm. What’s the normal response most people give when they do get in trouble?
One of the worst responses you could think of but a very normal one is most people say I’ll just transfer my valuable property in my brother’s name, into my wife’s name, or into my mother’s name. Or they’ll try giving it away to a friend so that way creditors won’t be able to get it. These are typical responses and also the most foolish, stupid, and dangerous responses you can think of.
But it’s typical, we call it rule number nine. I’m doing this short video to alert you that you should never do this. What have you done when you transferred your important asset, your property with a million dollars net worth to your aging mother? What have you done to her? You’ve turned her into a co-conspirator. You’ve involved her in your litigation even if it hasn’t been filed. You’ve turned your mother into you co-conspirator or your brother, or your wife. Never involve your friends.
All asset protection should be fully disclosable. Stealth matters, you don’t go out and yell what you’re doing. Stealth is good but you need to assume that every single thing you do gets discovered and you need to be able to hold your head up high when it’s disclosed to a judge. So, you don’t go giving it away to a friend. What’s that friend? A friend is just somebody with a wink and a nod who’s holding it for you as you’re aging. You’ve turned your friend into a co-conspirator. You forced your friend to incur tens of thousands or at least thousands of dollars in legal fees and you haven’t done a damn bit of good because it doesn’t hold up or stay protected. So, next time you feel this compulsion to give it away to your friend, don’t.