How To Make Your Personal Assets Invisible (Remove Your Name from Assets!)

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In this section, Toby Mathis discusses how to make yourself appear invisible in terms of your assets and financial condition. He explains what assets are typically visible in an asset search and how to hide certain assets from being seen.

Understanding Visible Assets

• An asset search reveals information about a person's financial condition, including owned properties, businesses, vehicles, and other titled assets.

• Certain assets, such as those titled with a third party, are not included in these reports.

• It is important to know what can be seen when someone is looking at your financial situation.

Assets That Can Be Seen

• Assets that can typically be seen include houses, cars, boats, RVs, businesses (LLCs), and financial accounts like bank accounts or retirement funds.

• Rental properties owned by an individual may also be visible during an asset search.

Identifying Good Defendants

• When assessing someone as a potential defendant for a legal case, it is crucial to determine if they have the ability to pay any potential judgments.

• A good defendant is someone who has sufficient assets to cover the judgment amount.

• A bad defendant is someone who lacks the means to pay off a judgment even if it's substantial.

Making Yourself Invisible

• Toby Mathis explains that he will show how to make all these visible assets invisible so that you are not perceived as a good candidate for legal action.

• The equation used by lawyers involves determining the settlement value of a case based on its claim value multiplied by the chance of winning.

• Costs associated with pursuing legal action need to be subtracted from the settlement value.

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The Cost of a Case

In this section, the speaker discusses the cost associated with a legal case and how it affects the overall value of a claim.

Factors to Consider in Determining Claim Value

• A claim is evaluated based on its potential verdict or settlement value.

• The attorney assesses previous verdicts and settlements to determine the worth of a claim.

• The chance of winning the case is factored in, typically represented as a percentage.

• Costs related to the case are subtracted from the claim value.

Chance of Recovery and Settlement Value

• The chance of recovery refers to the likelihood of actually receiving the money even if one wins the case.

• Insurance coverage plays a role in determining the chance of recovery.

• If there is no insurance or possibility of recovery, the settlement value may decrease significantly.

• Nuisance value cases may involve settling for a smaller amount due to minimal actual value.

Making Yourself Less Attractive as a Lawsuit Target

This section focuses on strategies to reduce one's vulnerability as a target for lawsuits by minimizing public exposure and assets.

Maintaining Privacy in Public Records

• It is important to make sure that personal information and assets are not easily accessible through public records.

• Limiting public visibility can deter potential litigants from pursuing legal action.

Delaying Financial Discovery

• Initial lawsuits focus on liability rather than financial situation.

• Financial discovery typically occurs during supplemental proceedings after obtaining a judgment, which can take time.

• Creating uncertainty about one's financial condition can discourage litigants and keep settlement values higher.

Minimizing Assets' Visibility

• Owning numerous valuable assets increases attractiveness as a lawsuit target.

• Having significant real estate holdings or businesses can be seen as an opportunity for higher settlements.

Case Illustration and Maintaining Invisibility

The speaker shares a case example to illustrate the importance of maintaining privacy and invisibility in legal matters.

Case Background

• The case involved a catastrophic injury in a business setting with multiple potential liable parties.

• Insurance coverage was partial, creating uncertainty about liability and recovery.

Importance of Invisibility

• One of the parties involved was the speaker's client, who benefited from being invisible in public records.

• Limiting public visibility reduces the chances of being targeted for lawsuits.

Uncertainty and Settlement Value

This section emphasizes the significance of creating uncertainty regarding recovery chances to maintain higher settlement values.

Balancing Damages and Recovery Chances

• Keeping settlement values high requires balancing the perception that damages were caused while casting doubt on recovery chances.

• By doing so, litigants may be more willing to settle for higher amounts even if they believe they were harmed.

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Understanding Asset Protection

In this section, the speaker discusses the importance of asset protection and how it can help individuals avoid being targeted for lawsuits based on their perceived wealth.

The Importance of Asset Protection

• Individuals with significant wealth are often targeted for lawsuits because they are seen as easy targets for financial gain.

• Lawsuits can be time-consuming and costly, causing a significant disruption to one's life.

• Having asset protection measures in place can help deter potential lawsuits and protect one's wealth.

Case Study: Two Brothers' Different Outcomes

• One brother had taken steps to protect his assets by making them obscure and difficult to identify.

• This brother settled quickly with insurance coverage, avoiding protracted litigation.

• The other brother, who owned visible assets such as rental properties and businesses, faced prolonged litigation as plaintiffs sought more than just insurance coverage.

Maintaining Obscurity of Assets

• Keeping assets obscure makes it difficult for others to determine an individual's true financial standing.

• Public records can reveal information about property ownership, so it is important to remove one's name from public records.

• Transferring property into a land trust separates the title from beneficial use and enjoyment, providing obscurity.

Land Trusts as Asset Protection Tools

• Land trusts have been used for many years and are recognized in every state.

• Grantor trusts or living trusts serve the same purpose as land trusts when holding real estate titles.

• Some states may require listing beneficiaries, but the decision lies with the beneficiary themselves. It is recommended not to list beneficiaries.

Choosing a Trustee

• The trustee should be someone other than the individual seeking asset protection.

• Options include using an LLC or a fiduciary such as a lawyer or trusted friend as the trustee.

Can Your House be Seen in Public Records?

This section focuses on the visibility of one's house in public records and how to remove one's name from these records for increased asset protection.

Visibility of Houses in Public Records

• By searching national databases or using private investigators, others can easily find information about property ownership.

• It is crucial to determine if your house can be seen in public records.

Removing Your Name from a House

• Transferring a house into a land trust helps separate the title from beneficial use and enjoyment.

• Land trusts have been used for many years and are recognized in every state.

• Some states may require listing beneficiaries, but it is recommended not to list them.

Choosing a Trustee

• The trustee should be someone other than the individual seeking asset protection.

• Options include using an LLC or a fiduciary such as a lawyer or trusted friend as the trustee.

Setting Up an LLC

• Setting up an LLC in a state that does not list owners can provide additional anonymity and protection for assets.

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The speaker discusses the use of entities like LLCs and trusts to maintain privacy in public records.

Using Entities for Privacy

• The speaker mentions using Nevada or Wyoming as they have cheaper options for setting up entities.

• By using an entity as a trustee, such as ABC LLC trustee of the 123 main street trust, one can maintain privacy in public records.

• The speaker suggests naming the trust creatively, like "black frog trust" or "green frog trust."

• These entities are not filed with the secretary of state and are simply documents kept in a filing cabinet.

• Having a mortgage does not affect privacy since banking records are not public records.

• Banking records and tax returns are not accessible to the general public.

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The speaker explains that although some information may be disclosed to banks or courts, it is still not publicly accessible.

Privacy of Banking Records and Tax Returns

• While banks may require disclosure of depositors' names, banking records themselves are not public records.

• Similarly, tax returns cannot be searched by the general public.

• In certain legal proceedings like divorce cases, a court may order access to tax transcripts.

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The speaker emphasizes that maintaining privacy helps protect against frivolous lawsuits and unwanted attention from lawyers.

Importance of Privacy for Asset Protection

• Lawyers often assess the value and potential recovery of a case based on what assets someone owns.

• Maintaining privacy helps prevent frivolous lawsuits and unwanted attention from lawyers.

• Establishing privacy in public records is crucial for asset protection.

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The speaker discusses how they evaluate the value of a case based on various factors.

Evaluating Case Value

• Lawyers evaluate the value of a case by considering factors such as the extent of injury, chances of proving the case, and chances of recovering damages.

• They estimate costs and provide a settlement range based on these evaluations.

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The speaker explains how maintaining privacy in public records can help avoid frivolous lawsuits and unwanted attention from lawyers.

Avoiding Frivolous Lawsuits and Unwanted Attention

• Maintaining privacy in public records helps prevent frivolous lawsuits and unwanted attention from lawyers.

• Using entities like LLCs can help keep personal assets separate and protected.

• Putting a house into an LLC does not affect capital gain exclusions when selling the property.

• The IRS recognizes that even though an entity's name may not be publicly associated with an individual, for tax purposes, it is still considered owned by that individual.

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The speaker discusses using entities like LLCs to protect assets in states with limited homestead exclusions.

Protecting Assets with Limited Homestead Exclusions

• In states with limited homestead exclusions, using an LLC or land trust can help protect assets from foreclosure.

• By pointing a land trust to an out-of-state LLC, one can further safeguard their interest in the entity.

• Creditors can only obtain a lien against the asset through a charging order but cannot take ownership.

Family and Asset Protection

In this section, the speaker discusses the importance of protecting assets in case of accidents or lawsuits. They emphasize the need for good insurance coverage and suggest using an LLC to safeguard valuable properties.

Protecting Real Estate Assets

• It is crucial to have sufficient insurance coverage for potential accidents or injuries caused by family members.

• If damages exceed insurance coverage, creditors may seek other assets to compensate for their losses.

• Placing real estate properties, such as houses, in an LLC can provide protection against foreclosure.

• Creditors can only place a lien on the property but cannot force its sale or foreclosure if it is held within an LLC.

• Choosing a jurisdiction like Wyoming offers additional safeguards against foreclosure.

Vehicles and Personal Property

• Unless a vehicle or personal property is exceptionally valuable and unencumbered, there is less concern about protecting them from lawsuits.

• Most vehicles are either financed or leased, making them difficult for creditors to seize.

• The value of assets may decrease over time during legal proceedings, making it less attractive for creditors to pursue them.

Importance of Business Protection

• Protecting business assets is crucial due to potential liabilities and lawsuits.

• Using legal entities like LLCs can help separate personal and business assets, providing an extra layer of protection.

Asset Protection Strategies

In this section, the speaker further explores asset protection strategies. They discuss using personal property trusts and LLCs for specific cases where significant assets are involved.

Personal Property Trusts

• Personal property trusts can be used to remove ownership of high-value items like RVs from personal names.

• For substantial purchases made with cash, such as a quarter-million-dollar RV, utilizing a personal property trust might be beneficial.

Limited Liability Companies (LLCs)

• While LLCs can be used for asset protection, it is essential to have a legitimate business purpose for creating an LLC.

• Merely using an LLC as a means to transfer ownership without a valid business reason may not hold up in legal proceedings.

Conclusion: Business Asset Protection

The speaker concludes by emphasizing the significance of protecting business assets and the potential risks involved.

Protecting Business Assets

• Safeguarding business assets is crucial due to potential liabilities and lawsuits.

• Utilizing legal entities like LLCs can help separate personal and business assets, providing added protection.

• It is important to consider the specific circumstances and consult with professionals when implementing asset protection strategies.

Protecting Your Business Assets

In this section, the speaker discusses the importance of protecting valuable businesses and how to remove your name from a business entity.

Removing Your Name from a Business

• If you have a valuable business, there is a risk of being targeted.

• To remove your name from a business, consider setting up the business in another state or using specific legal structures.

• For example, setting up an LLC in Wyoming without disclosing your name can help protect your identity.

• Different states have different requirements and fees for business entities. Consider using land trusts or LLCs based on the specific state's regulations.

Protecting Rental Properties

• LLCs are commonly used to protect rental properties.

• In states like California with high franchise tax fees for LLCs, Wyoming statutory trusts can be an alternative option.

• Land trusts can also be used to avoid certain taxes associated with mortgages on real estate properties.

• It is crucial to put rental properties in some form of legal structure (LLC or land trust) to minimize personal liability.

Other Business Structures

• Limited liability companies (LLCs) and land trusts are commonly used for rental real estate.

• Different types of businesses may require different legal structures such as corporations, limited partnerships, or limited liability partnerships.

• Each state has its own variations and options for these legal structures.

Creating Uncertainty for Potential Lawsuits

• The goal is to create uncertainty and make it less attractive for someone to pursue legal action against you by hiding assets behind legal structures.

• By utilizing appropriate legal structures, you can discourage potential plaintiffs from targeting your assets.

Choosing Between LLCs and Land Trusts

This section explores the choice between using LLCs or land trusts for asset protection purposes.

• LLCs and land trusts are both effective for protecting assets.

• The decision between using LLCs or land trusts depends on factors such as state regulations, taxes, and personal preferences.

• In Florida, land trusts may be preferred to avoid certain taxes associated with mortgages.

• Ultimately, the choice between LLCs and land trusts is a matter of personal preference.

Importance of Using Legal Structures for Rental Properties

This section emphasizes the importance of using legal structures for rental properties to minimize personal liability.

• Holding rental properties in your name exposes you to potential risks and liabilities.

• By placing rental properties in legal structures like LLCs or land trusts, you protect your personal assets from being targeted in case of issues or lawsuits related to the property.

• Rental property owners should always consider using legal structures to safeguard their assets.

Creating Uncertainty for Potential Lawsuits

This section reiterates the importance of creating uncertainty for potential lawsuits by utilizing legal structures.

• The goal is to make it less attractive for someone to pursue legal action against you by hiding assets behind legal structures.

• By implementing appropriate legal strategies, you can discourage potential plaintiffs from targeting your assets.

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In this section, the speaker discusses the importance of keeping certain assets and personal information out of public records to maintain privacy and security.

Keeping Licensed Business Information Public

• If you are a licensed professional such as a real estate agent, attorney, or CPA, it is likely required for your name to be on public records due to licensing regulations.

Maintaining Privacy for Holding Assets

• It is important to keep assets that are held separately from licensed businesses or operating outside of them out of public records.

• This includes being a silent partner in ventures, owning properties or other liquid assets.

• The goal is to prevent others from easily identifying your ownership and targeting you based on perceived wealth.

Security through Obscurity

• The concept of security through obscurity involves making sure that personal information is not readily available in public records.

• By minimizing the visibility of assets and ownership, it becomes more difficult for others to determine what you have and potentially target you legally.

Minimizing Risk and Liability

• By maintaining privacy in public records, we reduce the risk of inviting lawsuits or being perceived as an easy target for legal action.

• This approach allows us to settle issues efficiently while leveraging insurance coverage when necessary.

• It's essential to minimize potential damage caused by leaving personal information visible and accessible.

Protecting Non-Public Records

• Private information that does not appear in public records, such as bank loans or retirement accounts like IRAs, remains protected from general scrutiny.

• Statutory protections often safeguard specific assets like pensions or real estate properties against legal claims.

Focus on Non-Public Record Assets

• The primary concern lies with assets that are not part of public records, such as rental properties, businesses, and primary residences.

• Working with a reputable firm can help remove these assets from your name in public records, ensuring greater privacy and reduced vulnerability.

Encouraging Feedback and Sharing

• The speaker encourages viewers to provide feedback on the content and suggest topics they would like to see covered.

• If someone knows individuals who are exposed or frequently targeted legally due to their visible assets, they are encouraged to share this information with them.

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