Author Topic: how to protect assets?  (Read 2510 times)

scrubbyfish

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how to protect assets?
« on: January 15, 2015, 12:19:29 PM »
I've learned the following options for protecting assets from scammy people:

-segregated funds (very expensive approach!)
-trusts
-Corporation
-Registered accounts such as RRSP, RDSP

What other ways are there? What is the most efficient and cost-effective, in your experience?
« Last Edit: January 22, 2015, 12:28:31 PM by scrubbyfish »

Eric

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Re: how do YOU protect your assets?
« Reply #1 on: January 15, 2015, 12:36:01 PM »
The use of a strong password is probably more important than anything else.  Also, it's free.

Static Void

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Re: how do YOU protect your assets?
« Reply #2 on: January 15, 2015, 01:15:56 PM »
401k is similarly protected from certain kinds of collection. Not sure about criminal penalties, but from bankruptcy.

http://www.nolo.com/legal-encyclopedia/can-judgment-creditors-go-after-my-retirement-accounts.html

(Which raises the question: If you are very deep in debt, it may make strategic sense to contribute to 401k instead of paying off debt, right?)
« Last Edit: January 15, 2015, 01:17:30 PM by Static Void »

johnstein

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Re: how do YOU protect your assets?
« Reply #3 on: January 22, 2015, 12:03:18 PM »
Glad to find this thread.  I have been searching something similar.  My wife and I are no where near the top 1%, but we are in the profession where lawsuits are very common (cough, medicine).  We are quite modest and were able have a little bit of savings.  A friend of mine and his practice were in a settlement and the amount is larger than what I imagined.  That prompted us to think about asset protection.

1) Setting up a trust seems very expensive, we just consulted a friend of friend and he said it costs about 5k just to set up. 
2) We live in Texas, and it appears the house is off the limit of creditors, so i think we're going to pay down the mortgage as quickly as we can and limit our savings.
3) Opening up a bank account for our kid, who's a minor, regularly put some money there for gift and also part of estate planning.  Is that account also off limit to the plaintiffs?  I cant imagine it is.  Say if my dad is a doctor and got sue, no way they'd get money from my bank, correct?
4) Heard of KISS trust, not sure if i can trust the legality of it.

Any other forms you guys are aware of?  Any help is appreciated. 

MishMash

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Re: how do YOU protect your assets?
« Reply #4 on: January 22, 2015, 12:26:53 PM »
Umbrella Insurance.

Frankies Girl

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Re: how do YOU protect your assets?
« Reply #5 on: January 23, 2015, 01:08:19 PM »
Glad to find this thread.  I have been searching something similar.  My wife and I are no where near the top 1%, but we are in the profession where lawsuits are very common (cough, medicine).  We are quite modest and were able have a little bit of savings.  A friend of mine and his practice were in a settlement and the amount is larger than what I imagined.  That prompted us to think about asset protection.

1) Setting up a trust seems very expensive, we just consulted a friend of friend and he said it costs about 5k just to set up. 
2) We live in Texas, and it appears the house is off the limit of creditors, so i think we're going to pay down the mortgage as quickly as we can and limit our savings.
3) Opening up a bank account for our kid, who's a minor, regularly put some money there for gift and also part of estate planning.  Is that account also off limit to the plaintiffs?  I cant imagine it is.  Say if my dad is a doctor and got sue, no way they'd get money from my bank, correct?
4) Heard of KISS trust, not sure if i can trust the legality of it.

Any other forms you guys are aware of?  Any help is appreciated.

Hahahah... did you google "KISS Trust" cause you'd probably never have mentioned them otherwise...

https://www.techdirt.com/articles/20140313/07405826562/company-fires-off-legal-threats-to-site-owner-over-third-party-forum-post-self-inflicted-damage-ensues.shtml

http://forum.mrmoneymustache.com/investor-alley/kiss-trust-has-sent-a-legal-threat-to-this-blog/

Wouldn't touch them if they paid me due to their underhanded and ridiculous way of doing "business." (which is my own opinion based off of the stupidity they showed over the whole debacle).


And for the OP's question - keeping a low profile and not looking like you're rich goes a long way to protecting yourself from scammy folks. Otherwise, stay off of mailing/phone lists, never give info out to sources that you can't verify, and have umbrella insurance to cover the possibility of getting sued for anything major.



scrubbyfish

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Re: how to protect assets?
« Reply #6 on: January 23, 2015, 04:17:26 PM »
Thanks, Frankie's Girl and everyone else! Still reading and learning...