Asset Protection Strategies in Texas
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- เผยแพร่เมื่อ 1 ส.ค. 2024
- We have quite a lot of folks reaching out to us looking for "asset protection." Now, this can mean a number of different things, depending on your situation.
Maybe you're worried about potential exposure to lawsuits.
Maybe you're worried about future ex-spouses or creditors taking your assets.
Maybe you just want to keep the IRS from seeing everything you've got.
Well, two of those are possible (and legal) with asset protection strategies.
Ultimately, people who have worked to create wealth want to protect their assets from creditors. And luckily, in Texas, you're in a debtor-friendly state, but you're still not getting free rein to avoid your obligations. The goal with asset protection is really to force better settlements, and give you the upper hand over potential creditors.
Today's video discusses the strategies you should employ, in the following order.
- Free and easier things you can do
- Collateralization (prioritizing your creditors)
- Creating trusts and legal entities
You unfortunately can't just hide your assets in a trust from creditors (Texas will likely just see that as a self-settled trust), and trusts are designed to give assets away. Same with fraudulent transfers that are intended to delay or obstruct assets from a creditor. If you're already facing a claim, it's too late.
This work needs to be done well before a claim is in place, so if you watch this video and still think you can benefit from asset protection, now is the time to act.
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Strohmeyer Law is a law firm based in Houston, Texas, specializing in tax law, estate planning, and probate law.
Nothing in this video is specific legal advice for you. Watching or commenting on this video doesn't create an attorney-client relationship.
For more information, visit: www.strohmeyerlaw.com
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Thanks for posting this video. One asset protection option in Texas you didn't mention is a deferred variable annuity contract such as the Fidelity Personal Retirement Annuity.
You're right--I didn't! I generally lump annuities in with other life insurance products, so I didn't mention it specifically in this video.
Great info keep it coming
Thanks, will do!
Great video! Thank you for sharing!
Thanks for this very informative video. Can you expand on someone residing in Texas opening a Wyoming LLC and/or a Trust (self-settled), as a 2nd or 3rd layer of protection strategy . Are there any benefits or additional protection one can derive from it? Thanks
Generally speaking, no, that won't provide a lot of protection. Can it help hide what real estate you own if that real estate has always been owned through the LLC or trust? Yes, because your name isn't listed, but by the time a lawsuit has concluded and the plaintiff is recovering assets, the defendant (the person who set up the LLC or trust) will have to disclose the existence of the LLC and trust as part of post-judgment discovery.
Texas provides no asset protection benefits from a self-settled trust and placing assets in an entity outside of Texas that is totally controlled by the person looking for protection won't necessarily provide any protection either.
Hi, I am in Texas. Am I understanding this correctly, I can just make up a name and create the trust document to form a trust, and the trust name will be recognized as a legal entity by the banks, mortgage lenders, etc? Would I have to get the trust document notarized?
You should talk about your specific circumstances with an advisor who's dealt with this before to ensure that you get your best answer!
Can you make up any trust name you'd like? Yes.
Will the trust be a legal entity? No, no trust is a legal entity. It's a legal relationship between the grantor, trustee, and beneficiary.
Trust agreements don't need to be notarized, but it's a good idea.