Hi Mark Kohler here with another two
minute tax and legal tip whether you're an entrepreneur Corporan
ploy protecting our most valuable asset oftentimes our home is absolutely
critical I recently just recorded a radio show on
this full hour and the links below I highly recommend
you listen to it for more details but in the short run clip I wanna give
you six options to consider and protecting your personal residence number one homestead exemption this is
an exemption to protect a certain amount of equity in your home no matter what type losses now the
amounts can vary from state to state some states it's great some states
terrible think of big states like Florida words and
unlimited homestead exemption OJ Simpson moved to Florida bought his
home completely protected in that lawsuit
just a thought number two tenancy by the entirety this is a search strategy where you use
language on the title at your home call tenancy by the entirety wherein if one spouse gets into a
lawsuit the creditor cannot touch the home cuz
it's not fair to the other spouse some states this is even good after
divorce or death you want to look at which states have
this about fifteen to twenty states give a decent tenancy by the entirety
protection statute large states don't even have it find out what's up in your
state number three equity stripping this is a
strategy of leaning your home and taking some
equity and protecting it through the use above loan in a trustee recorded against your house
this might be a he lock or you may even set up an entity to lean your own home also some options look at what's good
and bad in that strategy number four umbrella insurance very very
common love umbrella insurance and it can be
very affordable it may not be the primary strategy use
for your home but its also insurance that you can
use for all sorts of things in protecting you against potential
liability in protecting the equity in your home
get some quotes shop around and learn more about it number five some people go to the extent up taking
their spouse of title and think a maybe even a doctor where he is worried about a potential
lawsuits we put his wife on title to the home so he gets sued around operating table
they can't touch the house because it's in his wife's name some states this
works some states it doesn't it also depends
on the type of glossy on whether or not taking your spouse of
title can help you and you have to be very careful with the strategy look at
what the options are where you live number six DAPs for domestic asset protection
trusts these are amazing trusts they're getting more and more popular
used when more more states to protect equity in your home in
perpetuity for unlimited value they're amazing study up
and learn about now after listing the six strategies
that do work I want to tell you what doesn't work
think the revoke a living trust very very important in critical for
estate planning but it doesn't give you asset protection also be careful putting
your home into an LLC are limited liability company you
can shoot yourself in the foot for attack strategy in analyses meant for
business is not your home and then finally think I've ok you're a
vocal truss be very careful sums trying to sell you
want irrevocable trust company her home in it they are irrevocable notice the term in summary these are
some important considerations please give our law firm a call we'd
love to do a consultation with you to help you with your asset protection strategies also check
out my book lawyers are liars a cover all these topics and more on asset protection that works folks
this is an important topic in protecting your
home could not be more important as your an entrepreneur building wealth building at
your home give us a call we'd love to be of service Subtitles by the Amara.org community