Underwater Property? Naked Assets?
You need the Asset Protection Trust.
by Attorney Gary L. Fales
If you are underwater on your home, you need to consider that it will be years before you will recover your loss. If you are determined to face your situation, you need knowledge. You need to know the facts about what the banks are doing. You need to know the facts about your legal rights.
The bad news is that the banks are suing. I've seen the lawsuits from large banks, from small banks, from local banks and from national banks.
The good news is that the banks aren't suing everyone, and they are willing, in many cases, to forgive the deficiency (which is the difference between what you owe on the property and what it is worth).
Because we don't know what the banks will do in your situation, if you have assets you need to protect them. And the sooner you protect them the better. If you decide to strategically walk away from your property and if the banks are uncooperative and possibly hostile, what is the best strategy to protect your assets? I believe it's the Nevada Asset Protection Trust.
There are other possible choices. For example, you could give it to your grandpa or your daughter or an LLC.
There are two problems with these strategies. First, you don't control the assets once you transfer them to your daughter. She could get a divorce or a lawsuit or she could file bankruptcy or have IRS problems. Second, even if you think you have some control (as in the case of a LLC) the transfer to your grandpa can be reversed by your creditors for up to FOUR YEARS. So, these strategies are poor choices.
The Asset Protection Trust, on the other hand, keeps you in control, and creditors only have TWO YEARS to reverse any gifts to the trust. And if you understand how you can use the trust to negotiate with your creditors, you can start using the benefits of the trust right now. No waiting.
So, how do you know if you need an Asset Protection Trust? My general rule is that if you have over $30,000 in "naked" assets, you should consult an attorney about the viability of this strategy for you. A naked asset is any asset that is not already protected under state law. For example, naked assets would include real estate, checking accounts, savings accounts, CDs, brokerage accounts, retirement plans over $500,000, cash, gold and jewelry.
In my opinion, there's no hope for our underwater properties anytime in the future. Once you understand that, put your naked assets in the trust and then (for most people) you should attempt a short sale. If those negotiations don't work (in other words if the bank won't waive the deficiency) you should consider foreclosure. From my point of view, as long as the assets are safe in the trust, you should be empowered to take full advantage of your legal rights.
To receive your consultation with Gary, please click the link below:
FREE ASSET PROTECTION CONSULTATION
Gary L. Fales is an established attorney in Las Vegas, NV and focuses on asset protection.
The Law Offices of Gary L. Fales & Associates is authorized to practice law only in the following states:
Connecticut, New York, Idaho and Nevada.
The information on this website is not intended to be a source of advertising, solicitation, or legal advice,
and is not an invitation for an attorney/client relationship. It is intended for education purposes only.
