QUESTION
Asset Protection Question (see more details)
Asked on Jan 04th, 2017 on Estate Planning - Utah
More details to this question:
If a husband and wife were to setup a single member Wyoming LLC with the wife as the single member and then they transferred cash, securities, and real estate into that LLC would it provide for asset protection from any unknown future creditors or judgments brought against the husband as a result of operating in a more high risk profession. My understanding is Wyoming only allows for "Charging Order" creditor protection even for single member LLCs, which if in the example above the husband is not a member of the LLC any judgments brought against the husband would not be able to attach a charging order to the wife's LLC interest. Also, if the husband and wife reside in a different state and their real estate assets reside in that state does that change things. I would assume investments are actually held in the state where the investment company is located.
1 ANSWER
Family Law Attorney serving Salt Lake City, UT
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David R. Hartwig, Esq.
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First off, you are asking about Wyoming law. I am not licensed in Wyoming. Is there any particular reason why you want to set things up in Wyoming?
Second, putting everything into one entity does not protect everything because, if the entity is sued, then everything in that entity is subject to any liability in that suit.
Third, the LLC would have to be run as some sort of business, with all of the appropriate filings and meetings. If not strictly complied with, a creditor could attempt to pierce the corporate veil and go after assets.
You really need to work with someone to fully review your assets and risks. Then work to figure out the best options available.
Answered on Jan 04th, 2017 at 5:22 PM