Skip to main content

Asset Protection Trust; Land-Trust; Will; Corporation; other: What is is best ways to protect HOUSE we own? Other assets; cars?

Victorville, CA |

We purchased our 5bd:3bath home in 2012 in full for $80K (yippee)... We setup a "holdings corporation" C-Corp; which is currently holding the deed... We have hard time paying the $800+/year for corp taxes; and thinking a "land trust" might be better and cheaper than CORP... Now fearful that c-corp might be a liability rather than protection? I want protection in case debt-collectors come after me; do not want house; cars; to be subject to attack or lawsuit...

Attorney Answers 2

  1. Asset protection and estate planning, though related, are different strategies used to accomplish different goals. If your objective is to avoid liability because you are in a high-risk profession, e.g., a doctor, then the primary strategy to maintain your assets for your enjoyment should be asset protection. Generally, a revocable living trust is not a viable asset protection vehicle, nor is a land trust. Both can be reached with appropriate judgments. A corporation can also be "pierced" if its only reason for existing is to avoid creditor liability. Furthermore, transferring assets into any vehicle within a certain period is referred to as a "fraudulent transfer" and will be undone as quickly as the creditor can get a judge to hear its case.

    Key tools in asset protection, or "wealth preservation," are malpractice insurance, umbrella insurance, an LLC, domestic asset protection trusts, and offshore trusts.

    I strongly recommend you contact an attorney with experience in wealth preservation so that you don't unwarily set yourself up for contentious and costly litigation later. Spending time and money to insure your net worth is more prudent than spending what will be more time and a lot more money to pay court costs, attorneys' fees, penalties, and judgments because you tried it on your own.

    The answers and information I provide here, via a link, or any other reference do not create an attorney-client relationship. Before acting on any information provided, you should contact an attorney who has experience with your issue Though I may answer questions posed by individuals in other jurisdictions, I am licensed to practice only in the State of Illinois. If you reside outside the State of Illinois and your matter does not relate to a person or property inside the State of Illinois, you should contact counsel in your particular state. IRS Circular 230 Notice: "To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code of 1986, as amended, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein."

  2. Attorney Elliott hits the nail on the head. One thing is estate planning which you want to do for tax and/or inheritance purposes and another thing is asset protection planning. Estate planning tools such as land trusts or family trusts will not protect you legitimate and existing creditors. Neither an asset protection plan is bullet proof against this kind of creditors.
    Asset Protection Planning is aimed to protect your personal net worth against frivolous and bogus lawsuits.
    A local estate planning or bankruptcy attorney should be able to advise you on your options regarding the federal 125k homestead.

    Douglass Lodmell is the nations #1 Asset Protection attorney and has clients in all 50 states, protecting over $4 Billion in client assets. Answers given by him in this forum do not establish an attorney-client relation. He advises to seek a specialized attorney in the area of your interest for legal representation.

Wills and estates topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics