Often, real estate investors fail to remember asset protection and might not consider the benefits of legally securing their wealth and investments until last-minute, and many a time it might already be too late. As a realtor, it may be essential to question the investor regarding how they are taking title to the property, thus protecting their asset, and help them to understand the reasons why it is in their best interest to title the property correctly when they first take ownership (which will save time and money later on).
Whether you are a realtor with knowledge in asset protection or interested in learning more, teaming up with experienced real estate and estate planning attorneys, such as the Kadoch Law Group, can help you guide your investors in the right direction. This team of real estate and estate planning attorneys at Kadoch Law Group will work with you to ensure you know how to best assist your investors take title to real property with asset protection in mind.
Why is it critical for a realtor to encourage their investor client to consult an expert in asset protection? If an investor is currently in the process of developing his/her business, making investments, building wealth or have already done so, asset protection is a way in which the investor can ensure his/her wealth is securely protected over a long period of time. It includes a legal strategy where your hard-work, wealth and real estate investments are safeguarded from third-party claims, included but not limited to claims from creditors and the public.
It is important to understand that asset protection is not just a strategy used by the wealthiest individuals; it is necessary for nearly all people to consider, especially those who are starting to build a professional portfolio, and all people who own investments. Every circumstance is different and strategies to protect one’s assets varies, however it is imperative to legally protect any assets from “tort” lawsuits, tax claims or creditor claims.
Unfortunately, real estate agents, brokers, and sometimes even the most attentive real estate professionals are frequently sued or unintentionally involved in a legal dispute. More often than not, the most notable claim against real estate experts is fraud. To ensure investors are protected against creditors legally, there are various strategies you can become familiar with to best support your client’s needs.
One of the methods that can be used in ensuring assets are protected, is by transferring assets to a suitable trust, for example an irrevocable trust, which cannot be changed or terminated without permission from the beneficiary, or a land trust, which keeps secret ownership and trust assets. Additionally, asset preservation not only determines how to title assets while living, but also addresses what happens to assets upon the investor’s death.
If you are looking to partner with a knowledgeable team of Real Property and Estate Planning Attorneys to be beneficial to the investors who have not addressed asset protection, give Kadoch Law a call and we will provide the best possible service to you as we do with all of our partners and clients!