8 ms·

What on Earth difference does this distinction make to "Joe Public", exactly, given that they lack the wealth to navigate these systems? "Ooh wow, I better und

by k8svet 3y ago

What on Earth difference does this distinction make to "Joe Public", exactly, given that they lack the wealth to navigate these systems? "Ooh wow, I better understand how the system is specifically structured to grant inherit privileges to those with wealth, now I feel... ???"

K0balt 3y ago
Significant assets (anything over say, 10k in value) should probably be owned by a trust, corporation, or anonymous offshore LLC or foundation. (Escalating by value). The cost of doing this runs about 300-1000-3000 a year.
- nothercastle 3y ago
  It’s hard to get access to a professional that understands how to do this legally and can advise appropriately. Most financial advisors just peddle overpriced high fee index funds. Like how do you even find someone like that.
  - bruce511 3y ago
    Onshore trusts are simple to set up and administer. Google "trust accountant" and you should find someone in your area.
  - mrandish 3y ago
    There are law firms that specialize in setting up trusts. We found a local firm who handled setting up a trust for our family and it was pretty straight forward and not very expensive. If your family has assets >$1M it's definitely something worth looking into (and quite possibly for lesser amounts too depending on your situation). There are a variety of potential benefits (tax, inheritance, legal liability, etc) but one that shouldn't be underestimated is how much it can simplify the paperwork, process and delay at death vs just having a will. If you are elderly and have kids, creating a proper trust in sync with your will is one of the nicest things you can do for your kids. Having recently been through the death of a couple of parents, one who left a well-organized trust and the other who just had a standard will, the difference in work required and stress involved was night and day.
bruce511 3y ago
Your definition of wealth, and mine, might be different. I would describe anyone who owns a home, or business, to be wealthy. (If you own both, also risky). Navigating these systems takes an education you can get for free, and a few hundred $ a year. Obviously there are lots of people who are not wealthy, for whom there is no risk and hence no need to reduce risk. Getting educated about asset protection is not bad to do before you acquire assets. Just like the legal structures and implications for marriage are best learned before, not after, getting married. You don't need to be wealthy to be educated on the topic. Those that plan to get wealthy might find it beneficial to learn about this before they "lose it all". Lots of people learn how the world works "the hard way". I'd prefer you didn't. Naturally those with unprotected assets are also the juiciest prey for those who thrive on the misfortune of others.
- Repulsion9513 3y ago
  Ah right so because you can afford your mortgage payment you should also... be able to pay a lawyer and form an LLC and throw a bunch of money at it every year? (Also as I said elsewhere in some states - Texas - they can't seize your home anyway, excepting stuff like mortgages)
  - bruce511 3y ago
    It's not as simple as that, and will differ from person to person based on their situation, risk profile, and jurisdiction. Consult your financial advisor to see the best approach for you.
- k8svet 3y ago
  Maybe I'm just really ignorant but I don't totally understand how to mitigate the "risk" (?) of home ownership? For a few hundred dollars a year? Does this just refer to home owner's insurance, or something more? I have (by my stnadards) a high NW, much of which is non-retirement accounts, but some of that is due to my having virtually zero non-monetary assets to my name. I guess I'm curious what I should be looking out for, if and when I pick a place to settle and purchase something. I guess at the very least, this is something of a reminder that I should be purchasing decent traveler's insurance, especially in lieu of an American rent. BTW, I appreciate you engaging me kindly, when I had somewhat glib replies earlier.

by k8svet 3y ago

K0balt 3y ago

Significant assets (anything over say, 10k in value) should probably be owned by a trust, corporation, or anonymous offshore LLC or foundation. (Escalating by value). The cost of doing this runs about 300-1000-3000 a year.

nothercastle 3y ago
It’s hard to get access to a professional that understands how to do this legally and can advise appropriately. Most financial advisors just peddle overpriced high fee index funds. Like how do you even find someone like that.
- bruce511 3y ago
  Onshore trusts are simple to set up and administer. Google "trust accountant" and you should find someone in your area.
- mrandish 3y ago
  There are law firms that specialize in setting up trusts. We found a local firm who handled setting up a trust for our family and it was pretty straight forward and not very expensive. If your family has assets >$1M it's definitely something worth looking into (and quite possibly for lesser amounts too depending on your situation). There are a variety of potential benefits (tax, inheritance, legal liability, etc) but one that shouldn't be underestimated is how much it can simplify the paperwork, process and delay at death vs just having a will. If you are elderly and have kids, creating a proper trust in sync with your will is one of the nicest things you can do for your kids. Having recently been through the death of a couple of parents, one who left a well-organized trust and the other who just had a standard will, the difference in work required and stress involved was night and day.

bruce511 3y ago

Your definition of wealth, and mine, might be different. I would describe anyone who owns a home, or business, to be wealthy. (If you own both, also risky). Navigating these systems takes an education you can get for free, and a few hundred $ a year. Obviously there are lots of people who are not wealthy, for whom there is no risk and hence no need to reduce risk. Getting educated about asset protection is not bad to do before you acquire assets. Just like the legal structures and implications for marriage are best learned before, not after, getting married. You don't need to be wealthy to be educated on the topic. Those that plan to get wealthy might find it beneficial to learn about this before they "lose it all". Lots of people learn how the world works "the hard way". I'd prefer you didn't. Naturally those with unprotected assets are also the juiciest prey for those who thrive on the misfortune of others.

Repulsion9513 3y ago
Ah right so because you can afford your mortgage payment you should also... be able to pay a lawyer and form an LLC and throw a bunch of money at it every year? (Also as I said elsewhere in some states - Texas - they can't seize your home anyway, excepting stuff like mortgages)
- bruce511 3y ago
  It's not as simple as that, and will differ from person to person based on their situation, risk profile, and jurisdiction. Consult your financial advisor to see the best approach for you.
k8svet 3y ago
Maybe I'm just really ignorant but I don't totally understand how to mitigate the "risk" (?) of home ownership? For a few hundred dollars a year? Does this just refer to home owner's insurance, or something more? I have (by my stnadards) a high NW, much of which is non-retirement accounts, but some of that is due to my having virtually zero non-monetary assets to my name. I guess I'm curious what I should be looking out for, if and when I pick a place to settle and purchase something. I guess at the very least, this is something of a reminder that I should be purchasing decent traveler's insurance, especially in lieu of an American rent. BTW, I appreciate you engaging me kindly, when I had somewhat glib replies earlier.