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Asset Protection Laguna Hills

posted Jul 25, 2018, 3:32 PM by Peyman Kalhor   [ updated Jul 25, 2018, 4:48 PM ]

Asset Protection

An important part of estate planning is how you manage and protect your assets moving forward into the future. Whether you are concerned about your personal assets or your business there are various tools that exist specifically to assist you in keeping your property safe. Wether it is from tax collectors, accident victims, health-care providers, credit card issuers, business, or other types of creditors. There are many methods and tools to insulate your property. One option that may be sufficient is liability insurance and a Declaration of Homestead. Your first and most important step in asset protection is insurance, more specifically liability insurance.

Liability Insurance

Any asset protection plan worth its salt has liability insurance at the very top of it’s list. At Smart Money Learning we urge our friends and clients to consider either purchasing or increasing umbrella coverage on homeowner policies; purchase or increase liability coverage on business insurance policies. Most often, the cost of the premiums paid for increases in coverage is minimal in comparison to what might be required by a court in the case you are ever sued.

What is a Declaration of Homestead?

In many cases, your home (primary residence) may be your most significant asset. Each state has its own laws which dictate judgment protection afforded to a primary residence through a Declaration of Homestead. Those laws vary significantly from state to state. As an example, a state may offer a complete exception for a primary residence, meaning it’s full value, or a limited exception meaning a set sum such as $150,000. In some special cases, there is an exemption filed under special circumstances for example due to medical bills. It’s not very difficult to file a Declaration of Homestead, there’s a small fee involved, a form, and you need to file it where your deed is recorded. If you should need any help or have questions on how to file a Declaration of Homestead you’re always welcome to give Smart Money Learning a call anytime!

In many cases, liability insurance and a declaration of homestead prove to be sufficient in asset protection. However, in cases of high exposure, you can always consider the formation of a business entity to hold your assets or the creation of an offshore trust. It’s important to know about your options and the different tools available but also important to know that there is no guarantee that an asset protection tool is going to work forever. In reality, it’s almost guaranteed that you will need to adjust, revisit, and change your asset protection methods as your life changes or as new laws come in or old ones change.


Asset protection Laguna Hills

What about Dividing Assets?

Spouses face great potential liabilities and in some situations, it’s a good idea to look into dividing assets between spouses. Potential liability is not uniform; it is very possible that an individual is exposed to greater liabilities throughout their professional lives than their partner. In any such case, dividing personal assets can ensure that both parties remain privy to their entitlements and that assets are distributed equally. This applies only to assets under your name.

Business Entities

Two main types of protection offered by business include protecting your personal assets from business creditors and vice versa. Limited liability company (LLC), corporations, and limited partnerships are often used in protecting an individual's personal assets from any unexpected mishaps that may occur within the business.

Although, these three entities can also grant protection from personal creditors. In the case of a corporation, creditors can obtain shares (often through placing a lien) of their debtors. However, according to most state laws as they pertain to limited partnerships and LLCs, creditors are confined to a single entitlement to a charging order, giving them the right to distributions (as they pertain to the interest). All in all, creditors are limited in their capacities to exercise any rights beyond those held by an assignee, confining them to hold less power than other partners.

Formation of Trust(s)

Trusts are also a useful tool that can come in handy when trying to protect trust assets. What most people overlook when implementing trust to protect their assets is that the trust must be irrevocable and must claim ownership of the property in question. By giving up personal ownership of these assets, you are protecting them from any claims against your name. Trusts must be kept completely clear of your name in any capacity to ensure that any suits will not pull at those assets to fulfill the claim.

Trusts can also be implemented to shield assets from any beneficiaries. When a beneficiary enjoys the privilege of unlimited access to the trust, they also reap the benefit of their creditors having that same level of access. Therefore, one must always pay attention to the terms of their trust.
Asset protection trusts are all useful to some capacity, the following is a list of some of these trusts:

  • Blend Trust
  • Discretionary Trusts
  • Personal Trusts 
  • Self-Settled Trusts
  • Spendthrift Trusts

- Support Trusts

Domestic protective trusts can often leave you unprotected to some claims, but additional precautions can be taken to protect your assets by considering options in foreign jurisdictions. By placing your trusts offshore, you subject your trust to the laws of the jurisdiction in question. Some examples of these foreign jurisdictions include the Cayman Islands, Belize, Liechtenstein, and Bermuda.

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Smart Money Learning can help you with your financial education, tax-free retirement and protection grow wealth located in California serving clients in Orange County, surrounding areas, and across the country.


Financial Education Irvine

posted Mar 29, 2018, 1:11 PM by Linda Chevrier   [ updated Jun 25, 2018, 3:19 PM by Rafael Hernandez ]

Financial education Irvine

Smart Money Learning specializes in providing objective financial educations Irvine to help clients manage, grow, and protect their assets during their working lives and through retirement. As fiduciary consultants, we prefer to serve our clients – not sell to them. 

If you are reading this article, chances are slim that you have every won a big lottery jackpot. Why? Because the odds of winning are so low? Did you know that in 2014, Americans spent $70.15 billion on lottery tickets? That’s more than $300.00 per adult in the 44 states where lotteries are legal. That’s more than the total spending on music, books, sports teams, movies and video game combines., according to CNN/Money.

So clearly winning the lottery is not a viable option for creating wealth. Perhaps you would rather take your chances in the stock market?


Maybe you have notices that the stock market has been a little crazy these last 18 years. It’s A lot like a roller coaster, and although most of us love roller coasters, this one is a little too scary, a little too steep, and a little too fast, and the curves a little too tight. Maybe you want to get off the ride. Or maybe you have not been on the ride because you are one of the one in three Americans that have no retirement savings. Or maybe you didn’t start saving until your fifties, because you were focused on launching your kids into the world and missed all those years of compounding.

Add to this a drastic decline in pensions offered to employees, underfunded pensions, underfunded social security, and a rising record of national debt, you have to wonder how any of us can feel secure that we can have a lifetime of income. Simply making more money won’t prevent you from struggling in your senior years if you don’t take the time to plan for your retirement. Ideally, you want your parents to plan for you … the million-dollar baby!

Financial education Irvine

Unfortunately for me, today’s option was not available when I was a baby, but the good news is that this option is available to you now. Like advances in medicine or technology little smartphones, financial product designs get better over time because the marketplace demands it. You are not stuck with the same old 401K options your company puts in front of you. You are not stuck with what’s available at the bank. You are not stuck with the same old life insurance Grandpa had to die to use. And no matter how high our income taxes get, you are not stuck paying them in retirement.

Contact us for more information ☎ (949) 682-8263


“If you don’t design your own life plan,chances are you’ll fall into someone else’s 
plan. And guess what they have planned foryou? Not much?”

-Jim Rohn


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Let's Start Planning Your Financial Future Today

Smart Money Learning can help you with your financial education, tax-free retirement and protection grow wealth located in California serving clients in Orange County, surrounding areas, and across the country.


Living Benefits

posted Mar 22, 2018, 3:58 PM by Peyman Kalhor   [ updated Jun 25, 2018, 3:23 PM by Rafael Hernandez ]

Living Benefits

In 2015 the New York Times and the Kaiser family foundation conducted the first study on American families struggling with medical bills. It revealed that health insurance often falls as a safety net.You should not have to worry about medical bills while sick. You should not have to lose your savings. Living Benefits are important because the odds of suffering and serving catastrophic Illness are high.

Traditional Life Insurance offers Death Benefit while we offer Living benefits that cover Chronic Illness, Critical Illness, and Terminal Illness. Living Benefits-life insurance you don’t have to DIE to Use. Anyone who has experienced the gift of true peace of mind because of Living Benefits will tell you it is life-changing. My goal is to share the gift with as many people as possible.

Living Benefits

Living benefits are most often associated with permanent (cash value) life insurance. But even term life insurance policies can be purchased with one or more riders, which will pay you money while you’re still alive—under circumstances, you, frankly, hope you never find yourself in. Hint: Those circumstances all have to do with illness:

  • You’re terminally ill. You can receive a portion of your death benefit in advance, for help with medical expenses, one final around-the-world fling, or whatever.
  • You’re chronically ill. Frequently you’re considered chronically ill if you can’t perform several of the six activities of daily living, such as getting out of bed, feeding yourself, bathing, and so forth. You can receive a portion of your death benefit in advance, in situations like this.
  • You’re critically ill. That could mean you’ve been diagnosed with a heart attack, stroke, cancer, end-stage renal failure, major organ transplant, or some other pretty grim illness. Again, you can get some or all of your death benefit early—in time to be of some use to you.

Different Seasons of Life Require Different Investment and Planning Approaches

The living benefits offered by term insurance policies have to do with illness. And they all have something else in common. Did you notice what it is?

These are accelerated benefit riders. They only affect when the insurance company pays the money. They don’t affect how much is paid.

That means, for example, that if you have a $100,000 death benefit, and you receive $75,000 prior to your death because you qualified under one of these riders when you actually do pass away, the insurance company will pay only the remaining $25,000. They’ve already paid $75,000; they won’t pay that again.

Now, let’s go beyond term life insurance, to see what living benefits are available on the other broad type of life insurance, permanent life insurance.

Smart Money Learning specializes in providing objective financial educations to help clients manage, grow, and protect their assets during their working lives and through retirement. As fiduciary consultants, we prefer to serve our clients – not sell to them. Contact us for more information ☎ (949) 682-8263

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Let's Start Planning Your Financial Future Today

Smart Money Learning can help you with your financial education, tax-free retirement and protection grow wealth located in California serving clients in Orange County, surrounding areas, and across the country.


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