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Protecting Your Vehicles and Checking Account from Personal Judgements | Personal Asset Protection - YouTube
Channel: Clint Coons Esq. | Real Estate Asset Protection
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- Hey guys, Clint Coons here
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and in this video, we're
going to talk about,
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how do you protect assets
other than real estate,
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personal assets?
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All right, let's get started.
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(energetic music)
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Okay, so let me just give
you some backstory here.
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A number of years ago, one
of our legal secretaries
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in our office came to me with this issue.
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She was woken up on a Saturday morning
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at seven o'clock with someone
just beating on the door.
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She goes downstairs, opens the door,
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and here's this woman who
was just rabid, angry,
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and demanding that she turn over all
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of my employee's vehicles.
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So my employee had a couple
of cars, had a trailer,
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a boat, and she's standing there
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and she says, "Give me those vehicles.
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They belong to me."
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She's looking at her
saying, "You're crazy."
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She goes, "Those are mine."
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She goes, "No, I'm not, look it.
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I have titles for all of those vehicles."
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And sure enough, she had
a title for her boat,
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her trailer and her vehicles.
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Now what had happened, this
individual who was deranged,
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found my employee's information,
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was able to go on to the DMV
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and transfer title over to herself.
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So she was able to take what she found
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and then turn that into
her own personal assets
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on the public records by
having certain information
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that is publicly available.
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Now, this was a concern
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and we got it all
straightened out, of course,
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got the titles cleared
up, but what we did then,
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after the fact is we
held title going forwards
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in a different way, in
which when my employees,
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should you ever be in
that situation again,
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if it's a crazy person out
there trying to take from her,
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they're never going to know
that she owns these assets
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because they're no longer
titled in her name.
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And this is what it takes when you want
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to protect personal property that you own
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that's a titleable asset.
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In order to gain protection for it,
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you have to get it out of your name.
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And the best tool to utilize
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for this type of
protection is what I refer
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to as a personal property trust.
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Now, personal property trust
is a trust that you set up.
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It's similar to a, think of
it like a land trust, okay?
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You got to come up with a name for it.
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So we can call this one, the
You Don't Want This Trust.
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All right?
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So that's the name of your trust,
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You Don't Want This Trust.
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And of course you have to
have a trustee for that trust,
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so it can be you, it could
be an LLC that you set up
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that gives you, of course anonymity,
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wouldn't want to use yourself,
but you could be you.
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But anyways, you've got
to come up with a name
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for the trust and then you
have, you choose a trustee.
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Could be a nominee trustee,
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I've served as a nominee trustee before
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in these types of trusts.
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Now the personal property
trust is like the land trust
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in that you're going to be
the beneficiary down here,
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of this trust and then you
would be the successor's trustee
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if you're using a
nominee trustee over here
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or possible you've got a
Wyoming LLC that you set
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up as your trustee that you control.
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So whatever the case is, this
is the basic nature of it.
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So this entity gets set up
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and now what you'll do is
you'll change the title
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to Personal Property Assets,
so for example, you got a car.
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You want that car out of your name,
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so no one knows on the DMV who owns it,
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put it in your Personal Property Trust,
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You Don't Want This Trust,
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that's what's going to go on title.
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If you have a boat that you
don't want somebody to know
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that you own, put your
boat inside of that trust.
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RVs can go inside of this trust as well.
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So with the personal property trusts,
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they're designed to
hold personal property.
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Now, what about your checking account?
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Should you use this trust
for your checking account?
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You could, I would probably
set up a second trust
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for my personal checking account.
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So now you create this personal
property trust over here
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and you put your checking account into it.
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When you go down, I just actually opened
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up a trust account the other day
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with Chase Bank and I set it up,
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again, it didn't have my name on it.
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I came up with an obscure name for it
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and when we opened up
the account, he asked me,
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he goes, "Well, how do you
want your checks to read?"
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And I said, "Well, put
the checks in my name."
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But for title holding
purposes, that is not,
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the account is not in my name.
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It's in the name of this trust.
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You know, You Don't Want This Trust
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is what it would be called.
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So now my checking account's held there.
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Why would I want to do that?
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Well one, potential fraud.
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If somebody gets your personal information
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and wants to the steal your identity
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and they can try to find any
accounts that are in your name.
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Well, that's no longer in your name.
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It's in a trust name.
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If you get a personal judgment against you
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and an individual wants
to take that judgment
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and they figured out,
"Hey, they saw your checks,
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that you bank at Chase Bank or Wells Fargo
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or Bank of America."
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And they go down there
to record the judgment,
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what is it referred to
as a writ of garnishment,
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and they go after your account,
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well, the account's not in your name.
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They have a judgment against
you, not against your trust,
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so they can't get after
your personal checking,
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your personal savings that are held
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in this trust with that
writ of garnishment
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that they have on you individually.
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So when it comes to personal assets,
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setting up these trusts, all
you're doing is removing title
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from your name.
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What about from a tax standpoint?
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Okay, they're all disregarded.
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There is no tax issue
with these trusts, okay?
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Whenever you open up the accounts
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and they ask you who's
taxpayer identification number,
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not the trust, your
social security number,
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so taxes are irrelevant, everything,
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it's like you still own them.
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What about asset protection?
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Because I get this a lot.
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People will put comments on my videos.
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They said, "Well, Clint,
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I don't understand the
asset protection here.
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If you say, if I get sued
they can take my assets
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with a personal property trust."
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Absolutely they can, meaning this,
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that if they force you
into a debtor's exam
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and bring you in and they're
going after your assets
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and they tell you
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to describe every trust
you're a beneficiary on,
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remember these trusts are grantor trust.
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They offer zero asset
protection from predators, none.
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If you have an aggressive
creditor that wants
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to pull you through that procedure,
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they're gonna find out about these assets.
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They're gonna be able to go after them.
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So then why am I telling you
this offers asset protection,
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you might be wondering,
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because a lot of people don't go that far
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when they're suing people.
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They get a judgment against them
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and then they try to find
the assets that are held
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in their name, just by
recording the judgment
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in the county and hoping it sticks
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or they file a writ of
garnishment with the bank,
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hoping you have an account there.
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They don't go to supplemental proceedings
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and go through a debtor's exam.
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So from an asset protection standpoint,
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it keeps your name off of the title.
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So those little sticky types of judgements
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that people come after you with,
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just by doing the simple
recording won't attach to this.
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It also keeps the assets out of your name,
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so people don't know what you have.
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If they did an asset search,
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and they're trying to determine,
do you own any vehicles?
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What are the VIN numbers on them?
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Now you've got them out of your name,
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it won't pop there, so think
of it as a smoke screen.
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You can't sue what you can't see
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or you can't take what
you don't know they have.
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And this is what we're doing.
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It'll never protect you
against aggressive creditors
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that take you to that nth degree,
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but fortunately for us,
most people don't go there
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cause it's not worth the cost for them.
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They go for the lowest hanging fruit.
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You got a choice.
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You want to be the lowest hanging fruit.
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Keep it all in your name.
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If you want to do something simple,
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use a Personal Property Trust.
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It's a very inexpensive
way to get your name
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off of title for your personal assets.
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All right, guys, take care.
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(upbeat music)
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