When you set up an asset protection trust, you don’t want to put ALL of your assets into the trust so that you’re completely “broke” on paper.
When designing your asset protection plan, you do want to put your most desired assets into the trust, out of reach of future potential creditors. The steak of your assets is cash and other liquid assets.
Creditors want to take those because they are easy to take and put onto their own dinner plate. Removing those desirable, easy-to-take assets can make you less of a target for stupid lawsuits.
Colin Ley is an asset protection attorney and the creator of the PREP Trust® and Better LLC™. He is also the co-founder of LayRoots (along with with partner in life & business – Shreya Ley)
Being successful in America makes you a target for bogus lawsuits from shameless lawyers. We created an effective, asset protection solution, so you don’t have to worry anymore, happily knowing your family’s future is protected. Get started now by scheduling a free, 30-minute call at livemorecarefree.com.
Transcript:[Colin] Shreya here is a wonderful cook, let me tell ya. [Shreya] Thank you, Colin. [Colin] She’s got a magic touch in the kitchen. On a special night we get to eat steaks. I’m not gonna lie we kinda go all out. [Shreya] Yeah [Colin] We go all out. We invest in nice steaks. [Shreya] We do. [Colin] And we put them in the sous vide machine. [Shreya] Whoa [Colin] That’s French. It takes like hours to make. And ya fry it up at the end. and it sizzles, we charred the outside of it and it is amazing. And it got me thinking about how a nice steak dinner can be comparable to the process of funding your trust. That means putting assets in to the trust. So, when you set up an asset protection trust, you don’t necessarily want to put your whole dinner in there. You don’t want to put everything. You know the steak, the gross green vegetables. [Colin] The potatoes all that stuff. You want to maybe just put some of it in there. What you wanna do is you want to remove the steak. The thing that everybody wants. [Shreya] Mhmm. [Colin] Everybody wants to get their teeth on that meat. Right? More so than the brussels sprouts. Or the potaters. All right so the idea is you’re taking the steak off the plate. Putting that asset into your trust. So a steak, [Shreya] Mhmm. [Colin] Asset wise, would be like a brokerage account, cash, liquid assets. That’s what creditors want, see. [Shreya] I see what you’re putting down. [Colin] Yeah, now you see. Now you see. [Shreya] Yeah. [Colin] So you’re removing that incentive and you’re saying hey, all I’ve got are these brussels sprouts. These kinda soggy potatoes. [Shreya] I have never made a soggy potato. [Colin] But the steaks gone. You can’t get that steak, so. You know, do what you want. You know it makes you [Shreya] Have at the broccoli. [Colin] It makes your dinner less of a target from hungry creditors. [Shreya] Asset protection metaphor number 792. [Colin] I think so, yeah. When you’re thinking of your asset protection strategy. You gotta figure out what that steak is and whether you can take it off the plate. Once that is taken care of. You’ll be ready for dessert. What’s dessert, Shreya? I know what dessert is. It’s the peace of mind. [Shreya] Oh. I was gonna say chocolate chip cookies, but, it is [Colin] No. [Shreya] It’s the peace of mind.