Asset prtection

[vic]

I understand the best way to provide asset protections is to take title to the property by a Land Trust owned by a LLC.  Has anyone heard
of this method.  It was in a siminar I attended.

[tedjr]

That is what I have heard too. You first have to have something worth hiding and finding.  The trust is just for hiding the fact of who the owner is. You do not need to file trust documents that create the trust at the courthouse or Sec of State or anywhere. I believe the LLC is atually listed as the  beneficiary of the trust. I think there are articles written here about this very subject too.  Best to hire an attorney to set these up but you can do it yourself too.

[sanjosee]

I use a Land Trust with an LLC as trustee with the  beneficial interest of the Land Trust a separate LLC or LP.

[Charles E. Brown]

There is no such thing as a Land Trust in Texas.  Use and LLC or Limited Partnership if you want to have liability protection.
Charles E. Brown

[John Hyre]

Entities, trusts & the like are an important part of asset protection.  Just remember:  They are devices of the last resort - the entity kicks in only after all else has failed.  As such, I'd emphasize the "all else", to wit:

1)  Conduct a clean, prudent business.  This is so underrated and so under-discussed, particularly when compared to entities;

2)  Document how you do everything.  Use clean, simple, fair & understandable documents.  I am a very big fan of blunt disclosure statements.

3)  Know the rules - what kinds of things turn off judges & lawmakers in Texas?

4)  Have insurance, know what it covers and what it does not cover, pay special attention to managing items that are not covered.

And remember, asset protection is far more relevant when you have assets to protect!  By all means, use entities and trusts for asset protection & tax savings....but focus on items 1 through 4 and you are less likely to need to use the entities to save your bacon.

John Hyre