The Jon Sanchez Show

10/28-How to protect your assets from lawsuits.

Investors spend their lives accumulating assets. But then, the unexpected happens…..a lawsuit. Once that lawsuit happens, your asset protection strategies become limited. As we all know, a person can be sued for anything, so the most prudent thing to do is to have asset protection strategies in place, well before anything happens. We’ll discuss some very simple, yet effective strategies you can implement immediately.

Duration:: 35m
Broadcast on:: 28 Oct 2024
Audio Format:: other

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They're like on a Friday or something? Yeah. Yeah. It is. It really is. You feel like you're missing out on something like what am I supposed to do? You missed out on a record close on the NASDAQ. I know. But they took it higher today, which is even better. Exactly. But you didn't miss out because you're watching things like a hockey when you're traveling down the road. Unfortunately, yes. You never do. Only when I'm stopped. Only when you stop. That's right. That's right. We're hand the phone over to your wife and say, can you please tell me what the market is doing right now? Yeah. And she just throws the phone at me and says, focus on me. That's what my wife's doing. Right. Exactly. It's our time. Not the market. It's our time. Yes. I've got some good info for you. Talk to me. So Scott Reubener over at Goldman Sachs, and this is from marketear.com. Again, today, sort of in this window starts the best trading period of Q4 for US equities with data going back to 1928. So the median S&P 500 return from October 27th to December 31st. This is the median is a positive 5.2%. The more the median S&P 500 return from October 27th to December 31st in election years is up 6.25%. The NASDAQ over that window, 11.74%, usually, but the during election year is a positive 7.1%. So S&P, on average, up 6.2%, up 7.1% for the NASDAQ from here into the end of the year. So got some data going back to 1928. Doesn't mean it will happen. But if you bet to seasonality in some of the mystic madness, we subscribe to a times that trend is your friend. The trend is your friend. I covered something somewhere. I'm trying to look at my notes and see what almost identical numbers are for who my source was by name the source on Friday. But yes, it is. It's remarkable what happens there. You know, it really does. And I just again, I hate to sound so stupid, but I just I sit down this morning, you know, and four o'clock this morning, and I turn on my computer. I'm like, oh my God, here we are. It's October 28th, you know, first of all, where did the month of October go? And oh, by the way, yeah, you know, week from tomorrow, this crazy, hopefully this madness will be behind us as far as you know, I'm talking about the election side of things. But like you said, I'm with you. I'd be shocked if we have official results election night, but I was glad when it's over. And then you and I can talk about a lot of other things besides complaining about this side of the other. Yeah, exactly. Exactly. Well, good. Well, it's great to be back with you, my friend. Let's tell everybody what we have lined up for you. We will, of course, go through Jason's market summary of what happened today. And again, it was a record setting session again for the NASDAQ strong day for the Dow good day for the for the S&P 500. So I'm going to give you all the details and kind of lay out the earnings calendar coming up this week. Because boy, it's a big one. That's why those numbers are so strong, I think. But then we're going to get into a very serious topic. And that is this. Think about this for just a second. You spend your life accumulating assets, right? You saving your 401k, you buy a house, you do this investment, you do that investment, all of course to build up your net worth to get things going. But then the unexpected happens, a lawsuit. Well, once that lawsuit happens, your asset protection strategies become very, very limited. And as we all know, a person can be sued for anything these days, anything. So the most prudent thing to do is to have an asset strategy, asset protection strategy in place well before anything happens. So this afternoon, what we're going to be doing is we're going to discuss some of the very simple, very simple, but yet very effective strategies that you can begin to implement immediately. Some UA, when we go into a little bit more sophisticated strategies, definitely, definitely, definitely you will utilize an attorney to do so. But there are some very basic ones that you can do that I think a lot of you may not be aware of. And hopefully, you know, we'll bring some things to your attention that you can get these done. Like I said, immediately, and you'll understand what I'm talking about here and Jason's going to talk about here in a few moments. But you know, folks, again, the stories we can spend an entire show sharing stories of clients that have been sued for again, anything in the world, right? You can sue anybody for anything. It doesn't have to be legitimate either. And therefore, you know, again, you can see your whole life's work gone in a heartbeat. If you lose that lawsuit, number one, Jason, of course, as we all know, just fighting a lawsuit, you know, and in your mind, it may be a frivolous lawsuit, just fighting that lawsuit alone can bankrupt you literally in in attorney fees, ask, you know, Rudy Giuliani, right? He's guy just had to give up his his Rolex watch and one of his cars and his apartment and all that because he got nailed in a lawsuit and looks like he's gonna pretty much lose everything, even though he filed bankruptcy, which I thought was strange. But again, that's an extreme I know, and I'm joking when I say all that, but it can happen to anybody. It really, really can. Yeah, rosy topic for a Monday, for sure. But I think sort of as we, you know, try to always focus on his ways to be prepared before you need to be, right? And at least if you follow some of these tips, at least if anything ever did happen, whether you was by intent or by typically more often than not by accident, you're better prepared. So yeah, it's a good topic for sure. Yeah, exactly. Exactly. All right, well, let's get down to it. We got lots to talk about this afternoon. Let's get down to the market recap, please. Yeah, I mean, I think a bit of today was coming off of the weekend. I ran Israel, it seems that, you know, the back and forth has become, I don't want to say muted, right? It's just become less, I would say, ugly. And it's giving some folks whether right, wrong or indifferent, the feeling that maybe the end is closer than it was the weekend or two or three weeks before, even though there were some tactical strikes, oil was taken off the board, nuclear facilities, that's why you saw oil week today. I think it's just as much technical reasons than anything else, maybe more of an excuse to sell crude could be getting close to oversold. But you know, some of those areas that people run from or run to during these types of back and forth, I'd say, you know, it's nice to have a little more safety in at least, you know, hopefully these guys can figure something out like we talked about earlier that don't create a nuclear option or a heavy oil option that hurts everybody else globally. But you know, it's, it's just, yeah, you don't was worried about that. I don't know if you, if you noticed this also, but when I was alerted of the, of the attack, that was what Friday evening, you know, sitting at Costco having a hot dog, that was my solvatory, you know, Friday night, right, eating the dollar 50 hot dog, man, you can't beat that after I just spent, you know, $500 in Costco. So we can't afford a burger, but yep. And I got that alert and I looked at my wife and I'm like, oh boy, here we go. And you know, I got the alert on CNBC's app, but you know, I go to other sources like Bloomberg had a little tiny piece about it, you know, all the other news media. So either they didn't even mention it or it was very small, and I'm like, wow, this is, you know, this is pretty amazing to think that, you know, this happened in the world, not even talked about it. And then you really never heard much more about it the entire weekend. So it's getting like anything, right? It's the biggest deal in the world until the next time it's less and less and less. And I think that's part of what I mean, I'm in no way shape or form making light of it, but it's almost like a conversation where each person needs to get the last word in, right? More eventually, just just don't say anything, you know, I mean, I win by not having to say a word again. But it feels hopefully like that's where they've gotten to. But part of today's market too is, you know, people, and we'll get into it later, but you got alphabet, meta and Apple and Amazon and all these that are all due to report Microsoft later this week. And there's some, I'd say positioning ahead of it, as we've talked about, you continue to see more of that quote unquote Trump trade being priced into the market. The trade at this point is to bet against it, right? Given it's already moved as much as it had, small caps were up 1.6% today in an area that people are trying to position themselves for. If you get some positive news on the financial side, they can certainly benefit from it. And I think that I think that rates are stretched to the upside at that 4.3 level on the 10 year is, you know, hopefully where things hold. But you had some auctions that you'll continue to get throughout the week, even though the two year had a pretty poor demand, the five year note sale was a touch better, but still not all that great. The fear of bonds right now, I think, is probably reached a bit of an extreme. Like I mentioned, I think that rates do go lower over the next couple months, certainly with the election out of the way will help things in general. But it wasn't a high news day, but the markets were still continuing to be cautiously optimistic for some of those seasonal reasons we mentioned. If you're an allocator right now and you're way behind the market or even your benchmark, you're starting to chase and moves like this, you know, you just feel that bleed higher. And people are trying to get out of cash and allocate back into their portfolios. Well, there's a lot of catch up to do if you are one of those allocators. I mean, here's where we said as of the close today, NASDAQ coming this year, year-to-date numbers. NASDAQ here today, it's up 23.7%, S&P is up 22.1, Dow 12.5, and the Russell 2010.7. So yeah, you get some some some kitchen up to do, which could create a lot of aggressive buying. And again, back to this that Jason just mentioned. And it's a little bit more details on this earnings calendar, because this is very important. Markets pay a lot of attention to this. Google is going to be on Tuesday after the close. Meta will be on Wednesday. And you also have Microsoft on Wednesday, and then Apple and Amazon are going to report on Thursday. So it'll all start tomorrow, all the way through Thursday. And we know, of course, if they miss, that could be bad. If they hit or do better than anticipated, that could lift all all ties as the saying goes. So very importantly, and overall, let's not mention this or let's not forget this point to Jason. And that is this is the heaviest week of the earnings season in this order. So yeah, you got a lot of things and you know, we'll wrap things up at the end of the week with the non-farm payroll numbers. So yeah, PPI. Yeah. So a lot of stuff. Yeah, absolutely. A lot of things coming our way this week. So it'll it'll definitely be a fun week and make sure you tune into the show each and every day to go over all the details. All right, when we come back, you ready to get a early start on our asset protection strategy? Sure. All right, let's do it. We will start when we come back. But first, the wonderful Kristen Snow has news traffic. She has traffic, which is news, I guess you could say. Kristen, welcome. Welcome back to the John Sanchez Show on his talk, 780 kilo H with Jason Gaunt. Here's how we finished up for the day. But first, here's how they're doing over at S&W tractor. They're ready to make deals for you. The years come into an end and they've got a great inventory of small tractors, medium, big ones, everything in between and all the implements. But most importantly, it's the expertise of standing the crew that will guide you into your next tractor purchase. How did you find them? Well, stop by their great showroom located at 4880 East Nylon in Carson City online at s&wtractor.com or give them a call 882-1225-82125 and don't forget, ask about the 0% financing for 84 months on select models. Back to the market. Here's how we did. We finished up 273 on the Dow today, a 0.65% gain to 42,387. The Nasdaq record finishes have mentioned up 49 points, 0.26% to 18,567 and the S&P 500 gaining 15 points, 0.27% to 5,823. Oil for the day is Jason mentioned. Well, things were relatively calm considering in the Israel Iran situation. Again, they did not hit any nuclear facilities, oil facilities, etc. So oil prices just tanked today down 6.1%, 67.39 a barrel, small gain in gold of $1.30 to $2,755.90 and a 5 basis point increase on the tenure treasury finishing the day at a yield of 4.28%. So continuing to edge up there. Alright, under our topic, which is how to protect your assets from lawsuits. Again, we spend our lives building up our net worth, building up our assets and then all of a sudden, it can be wiped out, whether it's a legitimate or frivolous lawsuit, regardless, it's going to cost you a bunch of money to defend yourself. And God forbid, if you lose, you start handing over assets. Now, Jason, I want to kind of start with one important thing I want everybody to realize and that is what we're going to go over with you today. Again, these are some very simplistic. Many of you may or may not have heard of these different strategies. We talked to our clients daily about them, but I wanted to start this by saying the most important thing that you can do if you feel you have significant, and I don't mean I shouldn't even use that word significant. If you have assets, and especially if you find yourself in a situation where you have some some hobbies that maybe that are a little bit dangerous that could potentially be a liability, or if you just want peace of mind, please, no matter what, go meet with an attorney. If you need some referrals, we'd be more than happy to share some names with you. We are not attorneys, but again, I just I can't stress this enough. Attorneys love when you come to them when there's not a problem. They hate when you come to them with a problem because there's kind of like us, someone coming to us a day before they're ready to retire. There's not much we can do, you know, at that point, same with an attorney. If you come to them, you've already been served with a lawsuit and, you know, not much that can be done at that point, but ahead of time, lots and lots of things that can do. So first and foremost and most importantly of everything we're going to share with you this afternoon, hire an attorney. So what do we want to do? Well, let's get it first of all, Jason, into the use of trust. Now, let's let's break this misconception again. A living trust does not provide any asset protection. We've shared that many, many times. That is more, again, a strategy to preserve your assets, your estate, et cetera, from probate court, et cetera. So Jason, let's go over some of the different types of trust that we can use to protect our assets. Yeah, I mean, the first one that always comes up is an irrevocable trust where ultimately the trust being an entity. If you don't have control over it and you have no ability to direct the trust and where the assets go, in most cases, it removes it from your estate, which means that it may protect it from creditors as you technically no longer own the asset. That's something that oftentimes people recommend irrevocable trust as a good solution, right? The con is the fact that you can't make any changes. You put assets into it, and if you want to make a change of some kind, you may not have the ability to do so. So that's one of the negatives, but it's certainly an excellent way to safeguard assets, yet keep control as setting it up per how you would like the assets divided, or how the income is to come from them. There's many different types of irrevocable trusts, but that tends to be the one that we see used first. Absolutely, absolutely. And it gets a little bit messy when you do irrevocals, and there's a lot of different other instances. We get into that sometimes for estate planning purposes, et cetera. You are assigned a completely separate tax ID number. You don't use your social security number like you do on a living trust, so on and so forth. And again, an attorney can explain these to you, but yeah, very simple. And then you can get into things like domestic asset protection trust and foreign trust, which is offshore, which don't let that scare you. That doesn't mean they're illegal by any means, but a lot of times they're used for various circumstances. So pretty sophisticated, they're irrevocable, not real sophisticated, but very, very effective. Then we move on to for the business owner, we've touched on this a million times, the limited liability companies LLC, you can have your various forms of corporations, S-Corp, C-Corp, etc. And then we've touched on this in great detail, the series LLC, which again, are multiple LLCs, but they give you the protection as if you had one, right? One of the many great things the state does is instead of, let's say you've got five investment properties, or you have five different businesses, for example, anything you want to shelter, most states, right, you got to open a brand new LLC for each entity you're trying to shelter. In Nevada, you can form what's called a series LLC, cost a little bit more money up front, but in so on and so forth, but overall, very cost effective. And then you can put, if we're going to use multiple businesses, you can put each business into the series LLC, which again, gives you the protection as if you own individual LLC. So, let's use the real estate example and say you have five rental properties, property one through five. In the old days before the series LLC came about, which has been a while now, you'd open LLC one, two, three, four, and five, and then that way if you got sued on property number one, they couldn't go after a property two through five. Then when the real estate boom really started to happen, the state came out and said, "Hey, you know what? This isn't real cost effective for people that have multiple properties, so let's create this thing called a series LLC." So, it's one LLC, but again, it gives you the asset protection as if you have LLC one through five in my example. So, very, very effective. Again, attorneys can set these up, they do them all the time, but that's again, if you have things that want to go into an LLC, a business or real estate, whatever the asset may be. Let's talk about one of my favorite, favorite ways to avoid lawsuits or protect our assets adjacent from lawsuits, and that is something that the state is really well known for because it's so great and that is the Homestead Exemption amount. Yeah, and we've talked about that pretty recently, right? The Homestead Exemption is a set amount of money that basically that asset is protected for, you know, shields, creditors. Yeah, exactly. Following the death of a homeowner's spouse or bankruptcy or anything along those lines, that asset is theoretically untouchable. Oftentimes, you know, your primary home is a great place for it. You could even oftentimes reduce homeowners, state property tax obligations if used, correct, but it is normally just something that people are using to, you know, if unfortunately something happens and you do have to declare bankruptcy that you're your primary home or a certain amount of it is not able to be touched by creditors, etc. Yeah, and the big misconception people have is they're like, oh, you know, does it protect me against if I default to my mortgage from the mortgage company taking it or IRS liens or mechanics liens, etc. And the answer is no. So once again, $605,000 is your annual or the current amount, your current amount used to be $550. So they up that a few years ago. But again, to be very clear, what is not protected is the mortgage or deed of trust, your payment of taxes on IRS lien, a mechanics lien filed by a contractor, child support or alimony payments, and just give a really simple analogy again. So we have $605,000 of our homes equity that's protected against lawsuits. So let's say the equity in your home is $700,000, right? And you get served on a lawsuit. Well, $605,000 of the $700,000, the attorney cannot touch. They can go after $95,000. Most attorneys will not do that. Once they see the Homestead exemption, they'll stop going after that asset because it is a pain in the butt for them to get their hands on that money. So it's really simple. Pay the where we at, $35. I think it is Jason. We have the forms, if anybody needs them, but to go to Washoe County Recorder or whatever county you're in, ask for the form, you fill it out, you pay the $30, $35, whatever your county is, you file it, it goes on the, on the trust deed, and you're set. That's all there is. And one final thing I'll mention before I go to break here, if you refinance your house, make sure that you refile. Many times you will lose your Homestead exemption when you're refinanced the house or other major events where the title changes a bit, like you get a divorce, whatever it is. Always check like once a year, just log into the Washoe County Recorder site if you're in Washoe County and make sure that your Homestead exemption is still in place. I've seen way too many times. People think they have it, I'll have them check it, and it has fallen off for various reasons. So just make sure, but again, best thing in the world, you can have a due to protect one of your largest assets, your home. It's turned over to Craig Neff. He's got a news trafficking with her. Hey, great. Welcome back to the John Sanchez Show on his talk. 780 KOHH with Jason Gottweith, finished up 273 on the Dow, the Nasdaq, a closing record of 18, 567, a 49-point game for the day, and the S&P up 15 points. All right, we're just getting into our subject this afternoon. How to protect your assets from lawsuits? So what we've covered so far, once again, you can use trust, but let me back up. Most importantly, if you find yourself in this situation or you're concerned about it, consult an attorney. We're just going over the basics. There's maybe, maybe more sophisticated strategies you can do. Much better again to be dealing with this now than before you get served with a lawsuit. I want to mention also, Jason, speaking of that, believe it or not, you can actually file your Homestead Exemption after you have been served with a lawsuit. It's one of the few things you can do after being served. So keep that in mind, everybody. So we started talking about use of trust. Again, there's all kinds of very sophisticated ones, a real common one is a irrevocable trust. Then we talked about LLCs and corporations, if you're a business owner, then we just mentioned the Homestead Exemption, $605,000 is the amount of your home's equity that is protected against most things. And let's get into the retirement accounts now. Now, a lot of you are not familiar with this, that in again, in our great state, this is very generous. A lot of states come nowhere near what Nevada allows you to do. The amount of your IRA, 401(k), so on, so forth, that is protected from creditors, i.e. lawsuits, and the state of Nevada is currently one half of a million dollars, $500,000. Now, your ERISA plans, things like your 401(k)s, your 403(b), so on, so forth, those should have unlimited asset protection. So people are always worried about that. I've had that question a million times over the years. Oh my god, I'm subject of a lawsuit. I got a bad car accident. And my insurance company wrote a check, but they're coming after me for the difference. Can I hide my 401(k) or IRA? I'm like, nah, we're not going to do anything illegal, and the answer is no, if you're in the state of Nevada, you don't have to. You are protected from creditors, again, with your ERISA plans, the 401(k), 403(b), etc., and up to half a million in Nevada. Again, some states, like California, read those laws. There's very little asset protection if you have IRAs, unless you are retired, then they get kind of generous there. All right, so that's the next asset protection strategy. Jason, let's skip number five. Let's go to one of yours and one of my favorites, and that is something that is so simple. I just had this discussion today with one of our clients, the old umbrella policy. Yeah, they make a ton of sense. And as you've talked about quite often, they're not crazy expensive, right? And that's the the nice thing is an umbrella policy is there to protect you over and above what your existing insurance does. So if you have whatever 300, 500 protection on your auto insurance yet, someone tries to sue you for a million or two million, depending on how much protection you have under an umbrella policy of some kind, you've got now additive protection on top of it. And as we've mentioned, the nice part is your insurance company doesn't want to play that claim either. And so by adding an umbrella policy, oftentimes you've also added some lawyers because they're going to probably bring theirs out to instead of, oh, yeah, we'll cut it to you. You should be good lawyers, for instance. We don't care. And so they've got pro skills. And so yeah, the the umbrella policy, you know, people often ask how much should I get, it depends on what type of assets theoretically would be exposed. As you mentioned earlier, so wisely, does my 401k fit or does it not depends on what state you're in. But you know, having a general idea of what your overall estate is worth and then taking a look at what the exposures that your personal insurance wouldn't cover, that's a good starting point, at least to give you a good round number of do I need two million or three million? It's usually, you know, the tune of 200 to 300 bucks more than, you know, the the increment before. So it's not crazy expensive. And you'll one of those that you'll be very happy you have after the fact versus, yeah, I'm going to, I'm going to cut corner here. It's probably a corner you'd rather not cut. Absolutely. And let's share with everybody some, some more details of how you actually buy this and what you're buying. So as Jason mentioned, you buy it in $1 million increments. Now, you buy it from generally you will start with your insurance agent slash company that ensures your home. Now there's a little covet that a lot of people don't know is almost all I've ran across one instance over my career, where the following was not true. Rest the time it was true. And that is the insurance company will need to ensure both your auto and your home before they issue the umbrella. So keep that in mind. If you have one insurance of your auto with one company and one with your homeowners, a different company, you're gonna probably have to combine them. So keep that in mind. Cost wise, what we generally see about $500 to $550 is kind of the average per million dollars, right? Now you buy it, as Jason said, $1 million increments. And I go one step further, Jason, you were saying, you know, how much do you do? Absolutely the calculation is you were saying what's your risk exposure, etc. I always tell people also I'll give a little caveat by as much as you can afford. I mean, you can, you can literally buy, they start to ask some questions when they do this amount, but you literally can buy up to $10 million. I've seen $10 million umbrella policies. Again, the insurance company like, why do you need so much? What are you doing? But, you know, for those of you that are business owners, things like that, it definitely, you know, comes into play, but it is so simple. It protects you above and beyond, as Jason said, your auto in your home insurance policy. I think I shared this story last time we discussed this. I'll do it real quickly again. Had a client that retired, part of the retirement process, we always talk about asset protection with our clients. I said, do you have an umbrella policy? He said, no, I said, go get one. Was a real high net worth guy, had a good retirement. And lo and behold, he went out, bought the umbrella policy about two weeks later, his son who was on his auto policy got into a car accident because he had a few too many to drink. And the passenger ended up suing not the not my client son, but my client because he was the registered owner. And guess what? This is Jason perfectly alluded to. Here comes the insurance company to defend it and did not cost the client one dime in legal fees. The insurance company wrote the check. It was done because folks, the way it works is these attorneys when when they sue you, the first thing they do is an asset search on you. If they like our client today, the reason we got on this subject, he's through our advice, he's paying off his house, he's going to own a $600,000 plus house free and clear. That is a, that's what we'll walk around with a bullseye on you, right? So we said homestead exemption, umbrella insurance. So when you don't have a mortgage on a property, attorneys love that and they will find it because when you get sued, guess what? You're going to have to fill out a disclosure form, a discovery form as it's called, listing all of your assets, every penny you have, and don't think you can hide it because if you do and they find out, guess what? The court doesn't smile too happily upon that. So you got to be honest, you got to list every asset that you own. That's where these attorneys start. But again, as one attorney taught me many years ago, that's why I'm such a huge fan of these umbrella policies, these umbrella policies are called low hanging fruit in the world of law. And that means once an attorney knows you have a umbrella policy, they tend to stop and this isn't a guarantee, but they tend to stop going after all of your other assets, your bank accounts and making you liquidate things like Rudy Giuliani's going through and so on and so forth. And they'll just deal with the insurance company and hopefully they reach a settlement if it's a legitimate lawsuit and the insurance company writes a check and, you know, you haven't paid a dime in legal fees and they write the check so you're not cashing in your other investments to do it. So just cannot stress enough. Very simple again, start with your homeowners agent and then begin the process from there. Jason, let's squeeze in some, let's go to some preneps and postneps because boy, this is another one we see a lot with clients. Yeah, and I mean, it's, the prenup is something that, you know, I mean, again, written well can help you, especially if you've amassed assets and have a second marriage or third, et cetera, to, you know, I mean, Nevada being a community property state, there's some interesting rules there as far as assets pre and post marriage. So I would say that's probably something that's not on our list is pick the right state, right? So some of those things are pretty important too. But yeah, right. Yeah, no, it's good. Exactly. But prenuptial agreements, postnuptial, those, all give you the ability to, you know, cordon off certain assets that were acquired prior to marriage or even after, right? If you write in the right rules that I make X afterwards, I would imagine the sky's the limit as far as what you can put on there. It's just a matter of what he or she will, will sign a green to once you've taken that step. But just another way to shield assets against a later litigious act if said marriage or third or seventh doesn't work out. Mm hmm. You got it. Excellent. All right, we've got two more strategies for you on how to protect your assets from lawsuits. When we return, let's wrap it up with Kristin Snow in the right now, traffic center. Hi, Kristin. Welcome back to the John Sanchez Show on News Talk 780K, which if you forgot or not forgot, well, maybe you forgot to listen. Could be. But if you missed this is a better use of words. If you missed any of our shows over the last months, how about years? Go to your favorite podcast distributor and search the John Sanchez Show. We have hundreds and hundreds of podcasts there. Just about any topic you can think of, we've done it. And we'd love for you to download it and listen to it. Tell all your friends around the country around the world. We have listeners literally around the world that listen to us. So always want to build up our listenership. So just do your favorite search, you know, again, iTunes, Spotify, you name it, we are out there. All right, we've been talking about how to protect your assets from lawsuits. Again, let me emphasize one more time. Talk to an attorney for foremost. That is your best line of defense. If you ever think that you have a possibility of getting sued or you're in a high risk profession or you do a lot of things that are risky or you're just kind of paranoid like the rest of us. Talk to an attorney, get these things in place, we'll ahead of time. Now, one thing and I get to really give you caution on this one. Our next point are gifting strategies. Again, I can't tell you how many phone calls I've received over my career of people saying, I just got sued, but I want to give, you know, my estate over to, you know, my son or my daughter or a friend or a relative or no, you cannot do that. That's called a look back period. Don't do that for social security, Medicare reasons. Don't do it for any reason because they will find out and it's a nasty, nasty result. Okay, so gifting strategies are something that need to be done well ahead of time before you get served on a lawsuit. Now, what's magical about this number? 27,220,000. You know what it is? 27 here. 27 gift tax to limit. That's it. That's it. That's exactly right. The gift tax exempt amount, meaning for two people that each person, whether you're married or not, each person currently currently is allowed 13,610,000. Good job, Jason. Going up $2,610,000 of assets before state taxes come due. Now, why am I bringing this up? Well, you and your spouse double that number 27,220. That's where I came up with that. Now, what does this mean? Right now in 2024, you can gift $18,000 each. So combine 36,000 if you're married to whomever you want. People always think, oh, you got to gift it to a relative to lower the value of your estate. So again, you don't give it up in lawsuits. Not true. You can gift $18,000 to anybody you want as many times as you want. Just make sure that each time you do a gift, you let your CPA slash a tax attorney know that you're doing it because they will lower that $13,610,000 amount by each amount, each dollar amount of your gift, right? But this is very effective. But once again, this is something you need to do well before any lawsuit happens because again, if you do it, once you're served with a lawsuit, they will look back and disallow it and oh, it's an absolute disaster. Rob, simple the bankruptcy, the ultimate asset protection strategy, Jay. I would just quickly add on to that. If you are below the gift tax exemption level, you don't have to report it at all. You don't have to tell your CPA and if it doesn't count towards that lifetime exemption, that's what it's there for. But yeah, bankruptcy, right? Usually a last result, but that's something that kind of hits the reset button and you get to deal with bankruptcy court and attorneys, et cetera. But oftentimes that's your only out. I'm sure you got it. Great job, my friend. We'll do it again tomorrow on the John Sanchez show. God bless. Have a great evening. This program was sponsored by Sanchez Wealth Management. The material in this program was intended as general information only and should not be taken as specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting john@sancheswealthmanagement.com or 775-800-1801. John Sanchez offers securities and advisory services through independent financial group LLC, a registered broker, dealer, and investment advisor. Member FINRA SIPC securities offered only in states, John Sanchez is registered in. Sanchez Wealth Management LLC and independent financial group LLC are unaffiliated entities. Every day when you log into chumbacassino.com, the ultimate online social casino, you get a free daily bonus. Imagine if you got daily bonuses in other parts of your life. I chose french fries over loaded french fries. I asked Stewart from accounting about his weekend, even though I don't care. 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