Imagine this. You make an appointment at your family doctor’s office. After driving to the appointment and a brief stint in the waiting room, the doctor calls you back to his office. Before you can even open your mouth, he hands you a prescription and informs you that you’re scheduled on surgery for Monday. You haven’t told him why you’re there. You could have a cold or need a physical for all he knows. But he’s giving you a treatment already–and an expensive, invasive one at that. Most of us would be a combination of puzzled and outraged at this bizarre behavior and want to know why the good doctor was making this decision, what the new prescription is, what happens to your old prescriptions, etc. So you ask. The doctor informs you: “This is the treatment I’m giving all of my patients now, regardless of who they are or what their ailment is. You’ll be fine!” Would that comfort you at all? Of course not. You need the treatment for you, customized to your problem and your unique circumstances. One-size-fits-all treatments would hurt more people than they would help, and arguably it’s simply not how medicine is practiced. The same is true in the equally nuanced, complicated, and personal world of law. So why would we expect the one-size-fits-all approach to work any better for asset protection? In short, we shouldn’t. Assuming the same tactics will work for everyone is using the same type of thinking as assuming the same medication will cure every illness. Further, taking a cookie cutter approach to asset protection is a mistake that can undermine its purpose.The Importance of a Customized Asset Protection StrategyYour asset protection plan should absolutely be tailored to you. That means your lawyer should be using the most suitable tools available for your situation. In order to do that, he or she must have an intimate understanding of your situation. Some of the things that can influence which tools are best for you include: Where you liveWhat kind of properties you ownHow many properties you haveWhere your properties are locatedWhether you are marriedWhat goals and personal ambitions you have for your real estate businessHow quickly your business is growingHow much you are making off of your investmentsWhat other sources of income you haveWhat your tax needs areWhat other financial considerations you may have And that’s actually a pretty short list, considering that it is far from exhaustive. Example: A Tale of Two InvestorsWhile it is true that there are best practices in asset protection, creating a plan that will work best for every investor is impossible. Even when two situations look an awful lot alike, one small detail can make the difference between a sound asset protection strategy and an unnecessarily expensive or ineffective one. Let’s take a look at an example of two investors with very similar outward appearances, but have very different outcomes with the same plan.Luke Sloan is a 35-year-old technology worker in Austin, TX with three passive investment properties and plans to acquire a fourth. After attending a seminar with his brother where he learned the dangers of keeping these properties in his own name, Luke read about the Series LLC as an option for limiting his liability and preventing lawsuits. He consulted with an attorney who was experienced in forming Series LLCs. He checked out his attorney’s web site and saw authoritative content on asset protection and a wide range of offerings, and looked into his attorney’s reputation to find it was positive. Luke’s attorney guided him through the process of forming a Series LLC and transferring properties into it using land trusts. Luke’s attorney also educated him on how to use his entity, and how to form additional child Series when Luke acquired new properties.Luke’s brother, Eli, is also a real estate investor. He is a 38-year-old passive investor working in Silicon Valley also in the technology sector, like his brother. They have a similar income. Also like Luke, Eli has three properties and wants to protect them from lawsuits. It occurs to Eli that perhaps he could save some money on legal fees by duplicating his brother’s plan with the cheapest means possible. Surely with so much in common, down to their tax bracket, these two brothers could use the same asset protection strategy, right? Wrong. Even if Eli got an attorney to create a carbon copy of his brother’s plan, it would leave him with an unpleasant surprise. It’s okay if you aren’t sure why. The difference between the two brothers is subtle. Although they’re otherwise alike, Luke lives in Texas while Eli lives in California. The Series LLC is a great entity for investors in most states, but it is not generally the ideal for California investors with multiple properties. If Eli went through with that plan, he would owe $800 per series in his series LLC (so, $2,400 to start assuming one series for each of his three properties) in Franchise Taxes to the State of California. That figure would rise with each newly acquired property.There is a better solution for Californian investors like Eli: the Delaware Statutory Trust. Again, it’s okay if you didn’t know that. It’s probably not your job to know it. An experienced asset protection attorney, however, would certainly be aware of this fact. The really expensive problems begin when investors like Eli attempt to D.I.Y. all or part of their asset protection plan. Even small mistakes like using a cookie cutter entity from an online service can undermine the entire purpose of an asset protection strategy. In our professional experience,The Best Asset Protection Professionals Make Plans Tailored to YouIf you have questions about any of the asset protection tools we offer or how our strategies can work for you, contact the asset protection attorneys at Royal Legal Solutions. We pride ourselves on customizing our asset protection plans, ensuring they fit the unique needs of each client. If you are ready to learn what your ideal asset protection plan looks like, set up your personalized consultation today.