How to Make Yourself Financially Invisible: Protecting Your Assets

Introduction

When you want to keep your money safe, it's important to do things to make sure your things that are worth money are also safe. In this blog post, we will talk about how you can keep your money safe from people who might want to take it away from you. If you want to protect your money and reduce the chance of getting sued, you can do a few things. First, you can look at public records to see what things you own that other people can see. Then, you can take smart steps to keep your money safe.

Understanding asset searches

Before we talk about ways to keep your things safe, let's first understand how people look for your things. When someone does an asset search, they want to find out about your money situation. They want to know what things you own and how much money you have. This information is often used to figure out if you can afford to pay if you get in trouble with the law.

Visible Assets

There are certain assets that are typically visible in public records and can be easily discovered during an asset search. These assets include:

• Houses: If your name is on the public record for a house, it can be easily found during an asset search.

• Vehicles: Cars, Boats, and RVs: Any vehicles that are titled in your name can be identified in an asset search.

• Businesses: If you own businesses or are listed as a director or officer, this information can be uncovered.

Invisible Assets

On the other hand, there are assets that are not typically included in public records and are therefore considered "invisible" during an asset search. These assets may include:

• Financial Accounts: Bank accounts, IRAs, and 401ks are not usually visible in public records.

• Rental Properties: Unless they are listed in your name, rental properties may not be easily discovered.

• Tax Returns: Your tax returns are not publicly accessible and cannot be obtained through an asset search.

Creating Invisibility: Protecting Your Assets

Now that you understand the concept of financial invisibility, let's explore some strategies to protect your assets and make yourself less attractive as a potential defendant:

1. Transfer Your House to a Land Trust

By transferring your house to a land trust, you can separate the title from the beneficial use and enjoyment of the property. This means that your name will not appear in public records, making it more difficult for creditors to identify your property.

2. Use an LLC as a trustee.

When setting up a land trust, you can use a limited liability company (LLC) as the trustee. By doing so, the public record will only show the name of the LLC, keeping your personal information confidential.

3. Consider personal property trusts for vehicles.

If you're concerned about the visibility of your vehicles, especially if they are valuable and unencumbered, you can utilise personal property trusts. These trusts can help keep your vehicles out of your personal name and away from prying eyes.

4. Establish LLCs for business ownership.

If you own a business, it's important to remove your personal name from public records. You can achieve this by setting up LLCs for each business and listing the LLCs as the owners. This way, your personal assets remain separate and less vulnerable to legal actions against your businesses.

The Benefits of Financial Invisibility

By implementing the strategies mentioned above, you can enjoy several benefits:

• Reduced Risk: By making yourself financially invisible, you minimise the risk of becoming a target for frivolous lawsuits or shakedowns.

• Privacy Protection: Keeping your assets out of public records ensures that your personal and financial information remains private.

• Enhanced Settlement Negotiations: When potential creditors or litigators cannot easily assess your financial situation, they are more likely to settle for lower amounts, reducing the potential damage to your wealth.

• Peace of Mind: Knowing that your assets are protected and your financial condition remains discreet grants you peace of mind in an increasingly litigious world.

Conclusion

Keeping your valuable things safe and making it hard for others to know how much money you have is very important for protecting your wealth. If you want to protect yourself from legal problems and lawsuits, there are some things you can do. One way is to learn about the things you own that are listed in public records. Another way is to use special legal tools like land trusts, LLCs, and personal property trusts. These tools can help you lower the chances of getting into legal trouble and reduce the risk of being sued. Always talk to experts who know a lot about keeping your things safe. They can help you make good choices based on what's special about your situation.

Disclaimer:

Please note that the information provided in this blog post is for educational purposes only and should not be construed as legal advice. For personalised advice and guidance, please consult with a qualified professional.