Umbrella over property held in your own name

Hi everyone

I went to the Dymphna Boholt seminar and she said something about being able to put an umbrella over property held in your own name as asset protection. Does anyone know what she means by this because it would be really handy.

Thanks
Ron

 

I find this amusing

 

Why didn't you put your hand up and ask ?

She prob means buying in a trust but has to over simplify due to target audience?

 

That's a pretty big umbrella...

 

Because she said it would take too long to explain it so it is covered in the bootcamp.

 

Is that because it isn't possible to protect assets once they're in my own name?

 

LOL, Sounds like they're trying to sell tickets to their next seminar. No doubt at the next one they try and sell tickets to their 3 day investment retreat

 

Spruiker magic-what a classic.

True that.


I'm thinking some sort of Kevlar umbrella, probably UV resistant with some lead lining for the radiation-proofing. If draped on a rigid frame then titanium would have to be the go.

 

I unsubscribed from her mailing list after it became very quickly a marketing exercise.

 

I would be more inclined to get formal legal advice from a lawyer rather than pay for the 'boot camp'. Actually, i wouldnt pay for the boot camp so my advice is probably irrelevant.

 

Only lawyers can advise on asset protection because it is legal advice. Not sure if this person is qualified or licenced to give legal advice and from what i have seen and heard ....

 

Does anyone have any idea what sort of thing can be done for protecting assets held in your own name? I can go to a lawyer but like reading up on things a bit before I go so I can understand.

 

Do you have a specific concern regarding assets held in your own name?

 

Perhaps try equity or irrevocable mortgage to a trust/company controlled by you?

 

Not really.

You have assets and they are exposed on litigation. If you want to protect those assets you really need to dispose of them. Depending on how they are disposed of they will still be attackable for around 5 years or indefinitely.

One strategy is the gift and borrow back strategy. e.g. you tansfer your share of the house to the spouse and rent it back. Or you transfer $1mil to a trustee as a gift and borrow it back again. THis sort of thing provides a bit of protection from creditors with the protection increasing over time. but it raises other protection issues such as protection from other family members and protection on death.

There are also promotors out there - many not even lawyers - who say you can 'gift equity' to a trust and let a trust place a mortgage over the property. However a mortgage is a charge to protect something - so there must be some movement of something or the mortgage would be defeated - s302 bankruptcy act from memory.

What you could possibly do is gift money to the trust and borrow it back and keep doing this over time increasing the debt owed to the trust with a trust placing the mortgage to protect its debt by taking a charge over your house. 5 years after each transfer of money this will add some good asset protection, and even before it will give some asset protection.

Don't try without legal advice - from a lawyer.

 

Just make sure you dont break the law and have insurance for everything else - no umbrella required, (and dont get divorced either).