Don’t Think it Can Happen to You?
- If you feel you are out of the line of fire, then answer this…. Do you drive? Or do you invite friends, family members, business associates or other people to your home to celebrate special occasions, or hold business gatherings or social events?
- Risk is everywhere, yet statistically only 38% of people structure their affairs properly in addition to having the insurance coverage they should have.
- Asset Protection is a subject matter no one really likes to talk about. If an attorney mentions it, people think he or she is selling doom and gloom. If an investor complains about it, people react negatively to him or her. If a business owner expresses concerns, people respond with the standard, ”Increase your insurance coverage.”
- Sadly however, do you realize that 2 out of 3 businesses get sued? Do you know that throughout your lifetime, the likelihood of you getting sued is 80%?
Who is at Risk?
FIND OUT IF YOU COULD BE AT RISK
View these few questions and if you answer "yes" to at least 2 of these questions you are at risk.
Don't Think it Can Happen to You?
DO YOU DRIVE?
Or do you invite friends, family members, business associates or other people to your home?
Think You Have Enough Insurance?
THREE STEPS TO SUCCESS
While insurance coverage is a must, many times smart insured people do not read the exclusions part of their insurance.
Get Free Access to the Asset Protection Wealth Library
Every week our Team of Attorneys and Asset Protection Experts put together webinars to educate you and explain our structure. UNLOCK these recorded webinars for more information on setting up.
- These Online Videos Give You the Nation’s Leading Tool to Limit Your Exposure and Protect Your Assets. UNLOCK the Wealth Protection Approved by Top Judges and Hear Their Feedback.
- Every week our Team of Attorneys and Asset Protection Experts put together webinars to educate you and explain our structure. UNLOCK these recorded webinars for more information on setting up.
Meet Cherif
Principles for Business. Investing. Life.
- One of the things I’ve always tried to do in my training is to be open. To be transparent. I like sharing my life and my career with my students, and I love it when they share theirs with me.
- During the course of my career, I have been personally involved in dozens of different businesses, hundreds (maybe thousands) of real estate deals, thousands of stock market trades, and numerous other endeavors. Many times I’ve been successful. Many times I have failed.
- But no matter the outcome of a particular business, deal, or trade, I always learned from it. If it was a success, I took note. If it was a failure, I REALLY paid attention! The point is, my success rate has improved along the way. That’s because of the thought processes I’ve developed when it comes to evaluating opportunities. And I call these principles and thought processes my success formulas.
- Today, someone can approach me with any deal—with any business opportunity—and I can make the decision based on these formulas. I hope you’ll use them to enhance your investing, business, and personal life as well.
ELIMINATE THE FEAR OF LAWSUITS AND THE LOSE OF:
Your net worth (including any cash sitting in a bank account)
Your home(s) (Primary residence AND vacation home)
Your investment properties (anywhere in the US)
Your business assets (in any state)
Your trading account Your cars and your boat
The Ultimate Asset Protection Structure
The idea was not to talk to attorneys who set up special asset protections, but to go to those who have litigated against them and unraveled these pre-packaged structures that seldom deliver what they sell as “personalized” structures.
We learned that the following does not stand a chance:
- Anonymous C Corporation entities do not work well because most judges demand the identity of the shareholders within 48 hours or they repossess the assets of these corporations.
- Land Trusts or other trusts do not work well because the judges more often than not demand the trust documents that reveal who the Grantor and Beneficiaries are so they can unravel the structure. Moreover, if the trust is irrevocable, you are at the mercy of a third party administrator, usually an attorney, who will cost you more and will be in charge of your money.
- Separate LLCs for separate assets do not mean much because you still have the equity in each LLC exposed and at risk, plus you have to maintain several entities at a greater cost and expense.
- Offshore structures do not work well because judges can easily demand to repatriate assets or they throw the proverbial book at the defendant who could be convicted of contempt of court.
- Friendly liens and credit lines that strip equity of assets must have legal reasons and economic substance for the courts or they run the risk of being dismantled. Plus a lien through a bank or other lender does not strip more than 70 or 80% of the equity you have in any of your assets.
- Insurance coverage is vital but it cannot solve all your problems due to exclusions, coverage limitations per claim, and number of claims that could be filed against each policy. Moreover insurance coverage cannot help you much in legal cases where the plaintiff’s attorney sues for punitive damages (to teach the defendant a lesson in the millions of dollars).
Through the brainstorming efforts of the top attorneys and some retired judges, we were able to formulate and finalize the ULTIMATE ASSET PROTECTION STRUCTURE that addresses all the points above and has precedent in US Federal and local courts.
In a Nutshell: The End Goal is Simplicity so Let’s Begin with Simplicity.
Your three lines of defense are:
- Act prudently (what you do, whom you do it with, and how it gets done)
- Get insurance and then umbrella insurance (including Errors and Omissions)
- Eliminate any equity in all your assets (All to only ONE entity, an LLC in WY)
Almost anyone with any asset needs the ULTIMATE ASSET PROTECTION STRUCTURE because it is the most powerful yet the simplest and least expensive set up. It has not been challenged in court because it has the proper legal precedent and economic substance to offer the three most important elements everyone needs:
- A Lawsuit Deterrent
- An Asset Protection
- An Asset Preservation
Here is a Summary of How it Works:
- Figure out how much equity you have in each of your properties and businesses. (Calculate the equity on the higher side)
- Show a debt obligation to the LLC against each of your assets (Our attorneys structure the debt through properly worded Promissory Notes and recorded Liens for each state where each of your Assets is located – All with legal reasons and proper economic substance to stand in any court)
- This discourages people from the get-go to pursue a lawsuit, and if they insist your assets are protected and preserved under the law because all has been structured prior to the lawsuit not as loans with the LLC but as capitalization of the LLC
- Set up an LLC in Wyoming (Our attorneys draft a specially worded Asset Protection Operating Agreement based on your specific asset values and locations)
- No plaintiff’s attorney will want to go after an asset that has no equity, as there is nothing to collect. (If the litigants still pursue a claim and end up winning and getting a charging order, it may trigger a tax invoice for phantom income on a judgment against which they have not collected a penny)
- You do not need anonymity or transferring of assets etc. as the WY LLC protects you under this structure and it is tax neutral as the LLC flows back to you as per IRS code.
TESTIMONIALS
“Cherif helps us make, keep, and grow money”
Charles W.
“The Asset Protection Data Was Worth It’s Weight in Gold”
Daria
“Cherif Uncovers Opportunities”
Bal S.
Robert J. Bluhm, Attorney
Bob Bluhm is one of the nation’s leading asset protection attorneys. During his 26 years as an attorney, Bob has been a trial lawyer and has represented several Fortune 500 companies as well as smaller, privately held businesses.
As a speaker, Bob has shared the stage with notable political figures, such as Presidents Clinton and Bush, Margaret Thatcher, Mikhail Gorbachev, Benjamin Netanyahu, and financial figures, such as Donald Trump, Jim Cramer, David Bach, Jean Chatzky, Suze Orman and Robert Kiyosaki. He is the author of several articles on asset protection and is a contributor to “The Asset Protection Handbook.”
Bob will share his years of insights into how you can protect yourself from lawsuits and use tax saving techniques to help you grow your wealth more quickly and securely.
Case Study #1
A commercial real estate investor bought an apartment building (high liability) in California and placed a large down payment.
Following the professional advice of a licensed person, he did the following:
- He placed the property in an LLC (Assuming the bank accepted the LLC and gave him the loan based on his personal guarantee and the insurance company also accepted the LLC and issued a policy etc.)
- He understands that the insurance for each entity has exclusion, it may not even cover a large claim, it has a large deductible, and will not cover multiple claims. He is constantly worried about the on-going risk he has and realizes that he can lose everything in one devastating lawsuit almost overnight.
- He set up another entity (maybe even a C Corporation somewhere) to be the “management company” for the apartment building
- He is feeling more vulnerable every month as his net worth and equity increase due to his apartment building’s appreciation and debt reduction.
Solution:
- He learns of our Ultimate Asset Protection Structure via one of our videos online on our website and fills out the document online
- An Advisor calls him and within 15 minutes he understands fully the exact simple and powerful structure that would work for him and each of his assets.
- 72 hours thereafter, the apartment building owners have an LLC set up in WY along with all the legal entity documents necessary to create the Ultimate Structure.
- He follows the instructions and records a lien against his apartment building (To strip and protect his current and growing equity), and he records a UCC1 filing against his Management Company (To protect its receivables, which is the monthly rental income). All is done with economic substance to the benefit of his LLC in WY
- He has the Certificate of Ownership of the WY LLC, so he is able to conduct business as usual, without a hitch or any complication. He can get additional loans and subordinate the WY LLC lien position, he can sell the apartment building by handing the Certificate of Ownership to the Title company, and he can also add more liens to new assets as he wishes and so on.
The total cost for this set up in less than $6K all-inclusive (WY LLC’s Operating Agreement and state filing fees, the specific Promissory Note for the specific asset with the equity to be stripped and the individual Lien that complies with the specific state in which the asset is located).
The on-going yearly fee to maintain the one and only WY LLC is $450 to keep it in good standing with the registered agent and correct business filing etc. This is a fully structured Turnkey operation.
Case Study 2
A couple had their primary residence in Arizona and also two residential turnkey investment rental properties in their name in Ohio.
They met with a professional advisor and were told to the following:
- Remove your names from all of your properties and place each property in a separate LLC in the respective state where the property resides. (3 LLCs)
- Have all the LLC’s owned by a Nevada LLC that flows through to a C Corporation in Nevada that will be anonymous
- The C Corporation in NV that is anonymous will have the attorney as the nominee. The owner of the C Corporation in Nevada shall be a Land Trust that will have the attorney as the Trustee for client attorney privacy.
The couple was fascinated by the entangled web of stealth set up and structures involving:
- Four LLCs (one in AZ and two in OH owned by one in NV)
- One C Corporation in NV
- One Land Trust.
The cost was $1,500 per LLC entity due to “Special wording in the Operating Agreement” that is $6K plus the NC C Corporation that is anonymous $3K and finally a land Trust that the attorney threw in as a bonus free of charge.
After paying $9K the couple realized that to transact any business the process became very convoluted and the attorneys had to step in each time. So they subscribed to the attorneys. Monthly fee of $35/mo ($420/yr. Plus they had to commit to renewal fees on all 4 LLCs in the amount of $650 ea. And the NV Corp renewal and resident agent fees another $650 for a total of $650 x 5 = $3,250 per year plus the attorneys fees all an all close to $4K/yr
After paying $9K the couple realized that to transact any business the process became very convoluted and the attorneys had to step in each time. So they subscribed to the attorneys. Monthly fee of $35/mo ($420/yr. Plus they had to commit to renewal fees on all 4 LLCs in the amount of $650 ea. And the NV Corp renewal and resident agent fees another $650 for a total of $650 x 5 = $3,250 per year plus the attorneys fees all an all close to $4K/yr
They ran into a few problems:
- On their primary residence in AZ they were told by another advisor that when they sell it, they may not get the tax exclusion benefit IRC section 121 for a tax free gain on a primary residence up to $500K for a couple filing taxes jointly because the property now is in an LLC entity name.
- One of their investment properties in OH had a Loan and the bank considered the transfer to an LLCs a change of ownership and it triggered the due on sale clause. The bank demanded a full pay off or they would be in default. They tried to show proof and involved an attorney in OH to assist them for this matter.
- The other investment rental property in OH was free and clear, but when they transferred the ownership into an LLC, the county tax assessor’s office, reassessed the property and charged them a transfer tax, they also retained an attorney to fight that matter.
- They were told that anonymous Corporations do not sit well with Judges and there are precedents for Judges asking for the shareholders identity or they repossess the assets inside the corporation.
- They also realized that any judge has the legal right to get the full documents of a Trust or they can unravel it.
- They also found out that anyone suing them can go after the equity in any of the assets being sued.
They felt more confused and more vulnerable than ever before but it was too late to unwind the structure that cost them $9K to set up $4K to maintain and another $2K in legal fees to deal with as stated above.
Solution: (What they could have done)
- They could’ve kept all properties in their name
- They could’ve learned about our Ultimate Asset Protection Structure via one of our videos online on our website and filled out the document on line
- An Advisor would’ve called them within 15 minutes to explain the simple yet powerful structure
- The couple would’ve had the LLC set up in WY along with all the legal entity documents necessary to create the Ultimate Structure.
- They would’ve followed the instructions and recorded a lien against their home in AZ and two other liens one against each of their the two investment properties in OH (To strip and protect their current and growing equity). All is done with the proper legal reasons and economic substance to the benefit of their LLC in WY
- They would then have had the Certificate of Ownership of the WY LLC, so they could conduct business as usual, without a hitch or any complication. They could get after that any additional loans and subordinate the WY LLC lien position. They could sell any of their properties by handing the Certificate of Ownership to the Title company, and they could also add more liens to new assets as he wishes and so on.
- They would have no risk of not benefiting of the capital gains exclusion of their own home, no risk of tax assessor reassessing the property values, no risk of due on sale clause etc.
Finally if anyone tries to sue them, there would be no equity to go after!
The total cost for this set up in less than $6,200 all-inclusive (WY LLC’s Operating Agreement and state filing fees, the specific Promissory Note for the specific asset with the equity to be stripped and the individual Lien that complies with the specific state in which the asset is located).
The on-going yearly fee to maintain the one and only WY LLC is $450 to keep it in good standing with the registered agent and correct business filing etc.
(This is a fully structured Turnkey operation)
The on-going yearly fee to maintain the one and only WY LLC is $450 to keep it in good standing with the registered agent and correct business filing etc.
(This is a fully structured Turnkey operation)
Got Questions about our Asset Protection Structure and How it Works?
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121 South Orange Ave. Suite 1500 Orlando, FL 32801