What can you lose if you don’t have an asset protection strategy?
Transcript:
Colin: Hey.
Shreya: Welcome.
Colin: Welcome to the Lawyer-Human Daily.
Shreya: Daily. It’s Shreya.
Colin: Ish.
Shreya: Oh Daily-ish.
Colin: Yeah.
Shreya: I didn’t know what I was being cued for.
Colin: I am the Colin, that is the Shreya.
Shreya: It is I, the Shreya.
Colin: Today, first of all, is Shreya’s birthday.
Shreya: What? You mentioned it. I thought we weren’t going to mention it.
Colin: So, happy birthday, Shreya.
Shreya: Thank you.
Colin: That is your present.
Shreya: Yay.
Colin: A shout out from me, on social media. Today we’re talking about, what can you lose. What can you lose if you don’t have an asset protection strategy?
Shreya: Yeah. Is it french fries?
Colin: If you have no money, you can’t get french fries. So, yeah, you can lose your french fries, ice cream.
Shreya: Your shirt. The shirt off your back?
Colin: You might as well lose your shirt if you don’t have a plan. But for reals, I have no shortage of people I speak with who are shocked to learn that they can lose their primary residence.
Shreya: What?
Colin: I know. Just because you ran somebody over. All right, that’s a joke. Come on, now.
Shreya: Right.
Colin: That’s a serious thing. But there’s non serious things, like losing a million dollars because your dog barks too much.
Shreya: Oh yeah. There is a lawsuit.
Colin: Yeah. I exaggerated, it’s 500 thousand. But, anyway.
Shreya: Yeah.
Colin: You could lose your primary residence for that.
Shreya: Tell us about this lawsuit, though. Give us a little lowdown about it.
Colin: Maybe, maybe in a bit. You’ve got an appointment in 10 minutes. So, we can’t get down with that. Too much. So, things you can lose.
Shreya: Okay.
Colin: Your primary residence. There’s a few states that protect your primary residence, like Texas and Florida.
Shreya: Texas.
Colin: Yeah. You can’t lose your home there. Washington, California. All these other place, if you’ve got a valuable home, you can lose it to a creditor.
Shreya: Yeah. Only a certain amount of your home or equity in your home is protected.
Colin: Exactly. 125 thousand, here in Washington, which won’t get you anything these days in Seattle.
Shreya: Yeah.
Colin: You can use-
Shreya: Maybe one of those tents the homeless people live in.
Colin: A tiny home. Actually, I think tiny homes are more than that.
Shreya: Yeah, I think tiny homes are more than that.
Colin: Yeah. You can lose your brokerage accounts. You can lose shares of your business or stocks you own, your LLC, you got a single member LLC.
Shreya: You could lose the whole thing, potentially.
Colin: That’s gone, and everything in it.
Shreya: If it’s multi-member, the distributions from it.
Colin: You could lose the distributions, savings, checkings … checkings. Checking accounts. What else is on the board, there?
Shreya: That’s it, you got it all.
Colin: Retirement accounts.
Shreya: Oh yeah, you didn’t mention that.
Colin: You can lose retirement accounts in some places, like Wyoming. Gosh, they’re terrible. They don’t let you keep anything.
Shreya: Really?
Colin: Yeah, big shocker, huh?
Shreya: That is a big shocker.
Colin: Yeah. Yeah, so there’s a lot you can lose, unless you have a plan in place ahead of time.
Shreya: Well, I sure hope that people get a plan in place.
Colin: I know, right?
Shreya: And get more educated.
Colin: Yeah. Because you don’t want to lose your stuff. I mean, how long have you worked to get the things that you got? You could just lose them like that.
Shreya: For something dumb, like a dog barking.
Colin: Exactly. So, get yourself a strategy and maybe keep your stuff if something bad happens to you. What do you think?
Shreya: I like it.
Colin: Okay. You want to do a little … You want to do that thing today?
Shreya: What thing?
Colin: If you found this helpful …
Shreya: Oh, yeah. If you found this helpful, share this with your friends or hit Like, or both.
Colin: Yeah. Or throw a comment down below. We’d love to hear from you.
Shreya: It’s very exciting to know that we have more than one listener/follower.
Colin: Thank you. Thank you. And you could also wish Shreya a happy birthday.
Shreya: Yes. You may do that.
Colin: She would appreciate that. All right. See you all.
Shreya: Bye.
