Posted on August 15th, 2019
Below is a full transcript of this video.
What’s going on, fellow entrepreneurs? Today, I want to talk about asset protection. Now, I’m not an asset protection attorney at all, and it’s a specialty, and it just doesn’t seem like there’s enough guys out there doing it.
But it’s very important for entrepreneurs, especially successful ones, to seek out asset protection attorneys.
And the reason why is because if you had a labor claim, and even if you did everything wrong, but you didn’t have any assets, chances are you’re fairly safe.
Even if you didn’t do anything wrong, and you get a labor claim, and if you have assets, then they’re going to come after you, whether it was a big deal, it wasn’t a big deal, whether you made a mistake, didn’t make a mistake, because they know that you have assets that you need to protect.
So I first learned about asset protection attorneys when I first became a lawyer, and I had a lawsuit that I was defending against another law firm, believe it or not.
And my client, who was an elderly woman that owned a ton of real estate, but she had protected all of those assets, and so when the law firm came after her, even though she did owe them the money that, I think it was a couple hundred thousand she owed them, we ended up settling for pennies on the dollars simply because their judgment was worthless.
And, again, I’m not an asset protection attorney, but if I remember correctly, she had a trust. She had all of her assets in a trust, and that trust was controlled by an LLC, and then she controlled the LLC.
So she still had use of her money, but they couldn’t get at it, because it was in an irrevocable trust.
So my advice to entrepreneurs, especially when they start building up their assets and they start making a little bit of money, is to seek out an asset protection attorney and make sure that you’re judgment-proof or as judgment proof as possible.
That way, when a former employee does come and say that whatever, something went wrong or you did something wrong, you’ll probably be able to get out of it fairly easily, just because there aren’t any assets for them to attack anyway, or attack easily.
So, anyway, that’s my non-labor law advice for the day.
Until next time. See you soon.
