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Speaker 1: Yeah, I think it's all the above, and it goes

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into layers. Right at the end of the day, if

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you're just starting out your greenhort investing or you don't

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have much, that's where LLC's and insurance come into play.

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You know, there's no point in building a taj mahal

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before you're ready for a taj mahal. But we can

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layer this stuff up so risky assets like you know,

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easy one to think about is investment properties, right, real estate,

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go directly into LLC, get some insurance on it. You're

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gonna start growing, You're gonna start scaling.

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Speaker 2: You're listening to Carrie Let's Financial Survival Network where you

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get valuable information you just can't find anywhere else to

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thrive in today's trying times. You need the Financial Survival

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Network now more than ever. Go to Financial Survivalnetwork dot

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com and get your free newsletter and gift. Financial Survival

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Network now more than.

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Speaker 3: Ever, and welcome you are listening to and watching the

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financial survival networks.

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Speaker 1: Carrie Lutz.

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Speaker 3: Hey, you know, in this day and age, if you

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have any assets, any wealth whatsoever, there are probably ten

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people you don't even know about who are out to

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try to grab them from you, grab your assets, take

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your wealth and doing it fully legally through the legal system.

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And Brian Bradley here, asset protection attorney, best selling author,

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renowned educator in the legal and financial spheres. And well, Brian,

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it's great to have you on here. So tell us

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how big is the threat from all of these predators

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out to take your money?

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Speaker 1: Yeah? Absolutely, and thanks Carrie for having me on. And

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there's going to be a lot of fun and we

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have a lot of important things to go over. And

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I think like myth busting a lot of misconceptions, you know,

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breaking down the different rules of trust and how these

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can protect you or not. And you know my book

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that you mentioned Bulber exposed, I wrotic because there never

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was kind of that horn book on what is the

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world of ask protection and the different layers and how

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do we go about creating it? So I decided, you

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know what, I might just ride it myself and you know,

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use it as more than an educational method for individuals

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to go through like what's a bunch of bs? What's not?

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How to start small, how to grow and scale into it?

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And kind of like what you were talking about, it

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was like if we if we set the scene one

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acid protection right has to be done before you're getting sued,

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right Like, It's not like something we can just jump into, like,

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oh my god, my house burned down. How do I

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get insurance from my house? And now to cover it?

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The world of ascid protection is exactly the same. You know,

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if you're already getting sued, you're too far down the

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rabbit hole. These are things that you have to think

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about to set up beforehand for them to work. Otherwise

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we're going to fall down the rabbit hole of fraud

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and fraudulent transfer. And to answer your question, right know,

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like what happened is we live in this Tooe happy

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Nevada nirvana. And to put some context to it, you know,

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the legal systems drastically changed over the past forty years.

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It's no longer about justice, but it's about creating divide

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and redistributing your wealth from the haves, which is you know,

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you and your listeners or the have nots. You know,

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it's basically I think the term is Robinhood economics. And

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in my book I go over in depth the historical

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big changes that led us to this. But to quickly

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summarize the problem, over the past forty years, things that

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just didn't happen in the past, or that weren't allowed

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to happen in the past, like contingency fee lawyers or

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law from advertising their commonplace. And this created a cultural

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shift of a predatory legal system that is no longer

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about justice, but it's now about profits. And our legal

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system is now run by trial lawyers and special interest

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groups who don't want to discourage lawsuits but rather increase

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the size of a victim class. And then this is

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just creating a society of victims. We basically legislated out

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accountability and responsibility for our own actions, and this makes

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loss suit it's an easy get rich scheme, you know,

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for those who want to try to play what my

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colleague used to call the lawsuit lottery. And it's a

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sad truth. But while attorneys right may stoke that fire

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that drives the American litigation engine, without the public's endless

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appetite for suing each other, there really wouldn't be a

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litigation crisis. And when we take a macro economic global

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look at everything, the big picture really is that on

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top of our destroyed legal import system, we have a

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global financial system that is structurally deep rooted issues we

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have you know, government backed fiat currencies that are in question,

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and this includes the US dollar and a monetary policy

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that's really plain and simple, right, it's in our face

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inflate or die. And then we got governments looking at

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deep and accessible pools of money and financing meaning you know,

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your money, your assets, along with financial repression, monetary economic manipulation.

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And so this is the world where we're living in

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and we're investing in, and so it makes it really

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hard to what do we do to actually protect and

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keep our assets. And that's where modern day as to

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protection comes into play, and you know, utilizing asset protection trust.

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Speaker 3: Well, like you said to Brian, the key is to

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set up your financial fortress before you need it rather

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than yeah yeah.

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Speaker 1: And there's a beautiful case on that point. Actually it's

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a twenty ten case. It's called sec versolo. And here's

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a situation because I get this call all the time,

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you know, and even though I talk about this and

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say if you're already in a lawsuit, please it's too late, right,

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but people need to understand. So this case really breaks

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down the importance of this of this point. So the

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court here found that the husband, mister Solo, made a

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fraudulent transfer after the sec judgment was entered against him.

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So what he did was he assigned assets over to

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his wife's trust to protect them after the judgment. Right,

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So this is just no weal, this is just straight

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up fraud. Yeah, how mister Solo was held in contempt

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of court? You know, but there's a big butt here.

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One hundred percent of his assets were actually able to

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be protected. And I always use this case to demonstrate

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two things. Was the power of really strong trust, which

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we'll get into, you know, probably a little bit. But

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what was horrible here is that he was held in

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content of court. But why what did he do wrong?

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The second point of this case goes to the timing

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of setting up an asset protection plan. Right, He transferred

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the assets too late. He was late to the game.

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He did this after the fact, after the lawsuit, after

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the judgment, and that was fraudulent, and that allowed the

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court to open up the door to hold him in

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civil content of court. So his assets were protected, but

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he opened up the door to be held in content

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of court face potentially face imprisonment depending upon the state. Right, correct, Yeah,

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so the big takeaway you know from that is just this,

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all this stuff has to be set up beforehand, not

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after the fact. Like just like even you know, like

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we're talking about a little bit like medicaid planning, you

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know for elders, is we got to do things before

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that five years look back period. And so like whenever

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we're trying to set up and preserve wealth or protect

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ourselves from lawsuits, can't do it after the fact. It

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always has to be set up early in beforehand.

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Speaker 3: Okay, so family limited partnerships trusts LLCs. What is the

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best vehicle to accomplish all this or is it all

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the above?

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Speaker 4: Yeah?

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Speaker 1: I think it's all the above, And it goes into layers.

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Right at the end of the day, if you're just

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starting out your greenhort investing or you don't have much,

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that's where LLCs and insurance come into play. You know,

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there's no point in building at taj mahal before you're

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ready for a taj mahal. But we can layer this

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stuff up so risky assets, like you know, easy one

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to think about is investment properties, right, real estate, go

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directly into an LLC, get some insurance on it. You're

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gonna start growing you're gonna start scaling. That's where management

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companies come into play. We utilize limited partnerships because there's

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just more that we can do with them, and limited

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partnerships separate out managers from owners, so it's a higher

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level of protection than just another LLC. And then as

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you get to like that million dollar mark is generally

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when we're going to talk about the world of trust.

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And not all trusts are the same. And I think

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that people get really confused on well, have my revocable

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living trust my estate plan, I'm good to go and

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protect it. And it's like, oh, sorry, you know, that's

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the wrong type of trust. That's not going to protect you.

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You need the revocable living trust for medical directors, financial directors,

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beneficiaries of avoiding probate, but they're not going to protect

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you from you know, creditors and lawsuits. They don't have

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the teeth. And then that's where acid protection trusts come

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into play.

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Speaker 3: Okay, And how good are these asset protection trusts assuming

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you set it up before and not after the fact.

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Speaker 1: Yeah, So it really just comes down to one what

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state are you in, because not all states recognize and

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have some sort of like self settled spend thrift legislation,

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like all acid protection trust are self settled. So if

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you live an example, a state like California, well, California

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does not recognize self settled spendthrift trust. They don't have

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the le legislation. And then there's a case Kilker versus

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Steelman came down in twenty twelve that said, we're tired

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of all you California residents running off to another state

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like Nevada and creating a Nevada ascid Protection Trust. You're

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not a resident of that state. We're not going to

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recognize it, and it doesn't work. And so you can't

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just go and jump around jurisdictional shop and say, well,

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I'm a resident of the state that doesn't have this,

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but this state does, so I'm going to go use

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that and bring this state laws to my state that

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I'm a resident of. So we got to look at

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what state that you're at. If you're a resident of

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like Nevada, yeah, we can utilize the Nevada ascid Protection trusts.

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How strong are they? Surprisingly, the purely domestic ones, they're

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not very strong. There's a lot of case law that's

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been coming around since the early two thousands. We got

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like Baitlevers, Mortisin and Rehover del burs Dale, and what

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all these cases are of domestic like US based asset

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protection trust. Then I've just been completely getting pierced and

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those are on good facts. So then what do people do? Well?

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We got another option, right, going purely offshore, the famous

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Cook Islands Trust the most the strongest trust in the

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world by far, the gold standard of any type of

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acid protection trust. But they're expensive as heck, and it

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takes all ay and you got to do like foreign

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disclosures back to disclosures ten thirty five ten thirty five days,

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very expensive to maintain most people ninety nine percent of society.

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That's just way overkill. It's not worth it. So how

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do you kind of bridge this gap?

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Speaker 3: Right?

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Speaker 1: That's where the best form of trust that I find

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is was called a hybrid trust. We call it a

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bridge trust. What you're doing is taking that foreign trust

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for that strength and then domesticating it through the IRS

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for the domestic simplicity of tax purposes. And so we

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have the strength in the back pockets. Domestic simplicity was

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max it cheaper to set up, easier to maintain, and

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then it's like a Swiss army knife. What we need

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when we need that strength, we have it. When we

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don't need it is in our back pocket and we

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can utilize it at that point in time. So really,

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the gold standard nowadays for the last thirty years that

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most people haven't heard about are these hybrid acid Protection

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trust And that would be kind of the route where

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most people would go once you hit that million dollar

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exposed networthmark. I want to have someone calling in and saying, Hey,

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I'm just setting starting out in real estate or investing.

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Can I get a strong hybrid trust. No, that's way

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overkill for you. Start at the base layer up and

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then let the system grow and scale as you do.

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Speaker 3: All right, Hey, what about moving to Florida, Texas, getting

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out of places like California where you're a virtual target

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from every direction. Do you ever have clients do that?

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Speaker 4: No?

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Speaker 1: I do, I do. I don't think you're ever gonna

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be able to fully run from any type of judgment

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because even in Florida and Texas, you still have out

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of control judges who anytime you go into a trial,

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you don't know what's going to happen. It's not worth

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the risk. I think Florida and Texas have great benefits

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for like homestead exemptions and certain things like that. Like

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an exemption is the strongest thing you can have in

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the world, right, it's an exempt asset.

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Speaker 3: You know.

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Speaker 1: A great way to think about it was the famous

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football player O. J. Simpson, right who got you know,

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found out guilty from murdering his wife, lost a civil trial,

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but then they never were able to collect on him

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because his Florida mansion was homestead exempted and then his

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NFL pension is a RESA exempted protected so they never

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He's never able to be collected on all his assets

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for safe. So that just goes the power of an exemption.

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But if you're in Florida and you're investing in other states,

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right like California real estate or other states, you can't say, well,

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your honor, I'm a Florida resident, like this is you know,

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apply Florida law when the injury is happening in California

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or in New York or some other state.

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Speaker 3: What about the limitations on the effectiveness of allc's and

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the partnerships living.

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Speaker 5: Yeah, so there's a lot of misconceptions on LLC's, Like

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I like el c's but we need to remember, like

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they're just the base layer, right, Like that's acid protection

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one oh one.

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Speaker 1: And for some reason, I think that a lot of

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people think that all of a sudden, well, I created

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this LLC and this is my draculas layer. I'm good

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to go, and they don't realize, like the veils can

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be easily pierced. And then there's a lot of confusion

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on where do we even set these things up in?

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Right do we go to Delaware, Wyoming, Texas, Nevada? And

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what we're really talking about, what I've been hinting on,

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and some of this is just charging order protection and

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corporate veil piercing, which is really big legal, fancy words.

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And what we have to remember is that one LLC's

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began in the seventies with the goal of blending the

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elements of corporations and partnerships without the downside of double taxation,

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right like acid protection was never the actual end goals

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of LLC's, So by nature, they just aren't the strongest strategy.

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And then they offer a limited veil of protection. And

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that veil is good, right, It's better than nothing, It's

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better than just having everything in your own personal name.

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But it's fragile and it.

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Speaker 3: Can be pierced.

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Speaker 1: Just think of it like that thin, flimsy piece of

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fabric that covers the face of a bride on her

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wedding day. And so what people need to realize is

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there's this case in twenty twenty three, so just last

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year that as a Supreme Court case is called Mallory

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versus NORTHFWLK, and the Supreme Court upheld a Pennsylvania statue

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that forces companies to face litigation within the borders that

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is registered to do business And I want to repeat

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that because it's actually really important. It forces companies to

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face litigation within the borders that is registered to do

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business in. So state courts are permitted to exercise now

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jurisdictions over registered foreign corporations that, let's say are holding

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your real estate, you know, just as if there are

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domestic corporations of that state. So running off to another

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state like Delaware or Wyoming or Nevada and you're not

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a resident of those states, the court are saying, sorry,

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now the states can come in and get jurisdiction over that.

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So we need to realize you're not going to get

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any beneficial use out of the LLC if you're not

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a resident of that state where it's holding the assets,

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because those states can just take take the jurisdictional control, gotcha.

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Speaker 3: So any place where you are, they can get you

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cor right, all right, So the gold standard of.

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Speaker 4: It all, the gold standard, I would say, layer this

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up over time, pick the proper jurisdiction that assets go,

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you know in the in an LLC in the state

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that they're in, Layer up with a management company.

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Speaker 1: We prefer limited partnerships. And then once you hit that

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you know high that one million net worthmark, hop it

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off with a really strong hybrid trust and that way

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we have the back pocket strength if we need it

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with the simplicity of the domestic So the gold standard

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is that hybrid trust. It's just a matter of wed

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in time, right, you get to that level.

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Speaker 3: Right, Okay, So family limited partnership so still pretty tight.

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Speaker 1: Yeah, the family limited partnership, right, I can still be pierced,

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don't get me wrong. You know it's what the benefit

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of a limited partnership, the family limited partnership over another

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LLC is that we can put more aid that's in it.

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For one, like we can stuff cash, stocks, bonds, all

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that non risky stuff directly in there, but there's a

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built in delineation or separation between managers and owners by statute.

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This is the only way that you can create a

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limited partnership is saying the GPS the managing member, the

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LPs the owner of this, and you just cannot do

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that with an LLC because they're not created that way.

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And so what some firms try to do is get

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really created with operating agreements. The problem when you do

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that with LLC's is you have to submit those operating

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agreements for a judicial review. So when a judge's looking

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at your operating agreement of your LLC and saying, I'm sorry,

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this is not how LLCs are structured and set up.

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I don't agree with your operating agreement. Your veil's now

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pierced and it's not operating how it was intended. So

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the better thing is just use the proper entity how

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it was structured and created from the beginning, which would

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be a limited partnership, because then we can separate out

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the next layer, which would be the trust. How the

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trust on the limited partnership, you would be the managing member,

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and now everything by statute is properly legally structured.

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Speaker 3: All right, well, I think you're giving us really good exposure.

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Next time you come on, we'll talk about those Medicaid

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Medicare trusts to avoid having all your assets taken if

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you fall ill and your insurance runs out or your

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Medicare runs out. You know, these are real life problems here.

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If people want to find about out more about you, Brian,

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connect with you on the web. How do you do that?

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Speaker 1: Yeah, they can jump on my website www dot bTB

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legal dot com. I use my website as an educational

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resource and there's a lot of frequently asked questions and

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a lot of educational videos on there. Feel free to

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reach out to me Brian ba and at bTB legal

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dot com. I do free consultations for people who listen

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on the shows, So I'd rather have you get some

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good advice and then take it from there to where

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you need.

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Speaker 3: Hey, that's excellent. We appreciate that. Hey, got a question

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from Brian or myself? Just shoot me email kl at

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Carrie LUTs dot com. Hey, you will find his link

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in the show notes to this interview on Financial Survival

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Network dot com. Go there, subscribe for your free newsletter.

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Ryan appreciate you coming on sharing your wisdom. We'll talk

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to you again soon. Absolutely, thank you so much.

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Speaker 2: Thanks for listening to Carrie Letz's Financial Survival Network, your

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solution to today's trying times. For the latest, go to

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Financial Survivalnetwork dot com. Financial Survival Network now more than ever,