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April 2023
THERE’S NO NEED TO FLY TO THE CAYMANS! The Smart, Legal Way to Protect Your Assets
Before I went to law school, I believed a lot of misconceptions about the term “asset protection.” I blame that on spy movies! Thanks to James Bond, I thought keeping your money safe from creditors meant dealing with shady tax advisors, stuffing a suitcase full of cash, and smuggling it to the Cayman Islands or another remote tax shelter. But that’s not the case at all. Here in Nevada, not only are there local, legal ways for residents to protect certain assets from creditors, but the legislature also actually encourages you to take advantage of them. I’m going to run through a bunch of those local, legal methods. But first, I want to rewind to a few months ago and explain why “asset protection” may sound familiar. In my February newsletter, I named “lawsuit-happy competitors who will put you (and your spouse!) at risk” as one of the biggest challenges facing business owners in 2023. Then, I recommended a Nevada Asset Protection Trust as one solution to the problem. If you acted on my advice and set up that trust, you made a very smart move in the direction of asset protection! As I suspected, that issue has continued to be a top concern for business owners since that newsletter came out. Some of my clients have asked me to address the challenge before they have a problem, while others have reached out for help wishing they had addressed it sooner. I hope you’re one of the former, but if you haven’t taken asset protection steps yet, here’s my message for you: Focus on the legitimate places you can hold your wealth, where it can’t be touched by the people trying to get your money. Below, I’ve listed a few of those places. Here in Nevada, there are about 26 different places where you can store your money and keep it safe from creditors, no matter how bad your financial situation becomes. You can think of each place as a bucket that holds a certain amount of cash.
An LLC is an even better method of asset protection than most business owners realize. Not only does it protect your personal assets in case you’re sued, but it also protects your company. If a creditor secures a judgment against you and wants to collect, they can’t just take your company if it’s in an LLC. They can get an interest in your owner draws, but they can’t make you take an owner draw — meaning you can hold them off indefinitely. I suggest taking advantage of all of the legitimate buckets created by our legislature. The more of those 26 buckets you fill up, the more assets you can keep safe from your creditors! Once those buckets are full, then we can talk about setting up a Nevada Asset Protection Trust to protect even more of your money. Of course, timing is key when it comes to asset protection. It’s hard to make these moves when you have creditors breathing down your neck. I recommend you start taking steps now before it’s too late and a lawsuit narrows your options.
To learn more about protecting your assets, call 775.448.6070 or scan the QR code on this page to watch my YouTube video on the topic.
• College savings accounts for your children
• A car purchase worth up to $15,000
• Retirement accounts like 401(k)s and IRAs
• The equity in your home
• A limited liability company (LLC)
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outdoors, and do not hang your clean laundry outside to dry. After you have been outdoors, remove your clothing and wash your hair and skin to remove any traces of pollen. Do not cut the grass, pull weeds, or do any gardening. Remove pollen from indoor air. It’s inevitable that pollen will get inside your home and vehicle. To combat this, utilize your air conditioning or invest in a certified allergy air filter! A dehumidifier and/or an air purifier will help to lower the pollen spore count in the air. Rinse out your sinuses. When pollen overwhelms your sinus passages, one of the best things to do is to rinse out your airways. A sinus flush with a saline solution is one of the easiest and most effective ways to eliminate the pollen that irritates your respiratory system. Take over-the-counter medications. After checking with your doctor or health care provider, choose an over-the-counter medication that is right for your symptoms. Medications like oral antihistamines, oral decongestants, and corticosteroid nasal sprays are all beneficial in reducing the effects of seasonal allergies. When Pollen Strikes Nipping Spring Allergies in the Bud
Spring has arrived! However, rebirth and renewal aren’t the only things in the air. During spring, trees, weeds, plants, and grasses release small grains of pollen into the air to fertilize other plants. Because the pollen is small and light, it travels through the wind and frequently causes allergic reactions. Symptoms of seasonal allergies include congestion, sneezing, coughing, a runny nose, an itchy throat, watering eyes, and irritation in the roof of your mouth. If you’re prone to experiencing allergies all spring long, here are some useful tips to keep them at bay. Reduce your exposure. During spring months, keep the windows in your home and car closed. On particularly windy or dry days, avoid spending time
Cheese and Desist! McDonald’s Customers Sue for Being Forced to Pay for Cheese
In Fort Lauderdale, Florida, things got a little crazy! Two McDonald’s customers sued the fast-food chain for $5 million, alleging they were unfairly charged when they ordered Quarter Pounders without cheese. According to the lawsuit, the fast-food restaurant chain historically had four menu options: a Quarter Pounder with cheese, a Double Quarter Pounder with cheese, a Quarter Pounder, and a Double Quarter Pounder. The “with cheese” options were roughly between 30 cents and 90 cents more expensive than the “without cheese” burgers. At some point, McDonald’s discontinued the “without cheese” options.
not receive cheese on their burger but were charged the same price as a Quarter Pounder with cheese. Their lawsuit states that they, and other customers who do not want cheese on their burgers, are forced to pay for two slices of cheese anyway, and they sued for damages as a result of being overcharged and required to pay for American cheese when they did not want or receive it on their burger.
According to USA Today, a McDonald’s spokesperson advised that the company does its best to allow customers to customize their food orders. If someone doesn’t want cheese as it is listed on the menu, the fast-food chain will not include cheese, thus they didn’t think the lawsuit had any merit.
Only a Quarter Pounder with cheese and a Double Quarter Pounder with cheese were available at the time these two customers visited the restaurant. The ingredients listed on McDonald’s website for these items include a sesame seed bun, quarter- pound 100% beef patty, ketchup, onions, pasteurized processed American cheese, and pickle slices.
And because the McDonald’s customers failed to prove they were damaged by an overcharge, the case was dismissed!
These customers ordered Quarter Pounders but asked for no cheese on their burger, and they did
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WHAT SHOULD MEDICAL PROFESSIONALS KNOW ABOUT ASSET PROTECTION?
Are you a doctor who has heard horror stories from colleagues about being sued by an upset former patient? And do you sometimes worry about what would happen if this happened to you and all your business and personal assets were at risk? Worse yet, are you having trouble finding affordable professional liability insurance in your specialty? We help a lot of medical professionals. And here’s the problem we see: You and a lot of other doctors have devoted years, sometimes decades, of your life to learning the skills you need to help many people. You heal many people. Thousands per year. And you know, and I know, that for every thousand people that you help, two or three of those people are not going to be able to understand how much you’ve done for them. And that you did everything you could for them, and they will be upset. And you don’t want to always be looking over your shoulder at those two or three people and worrying about what will happen if you keep helping the thousands and keep building your life. Am I going to be chased by these people? You don’t want to worry about what will happen to your family, the life you’ve built for your family, and you want some protection. And what’s more, you now have a team of nurses and other assistants who are outstanding medical professionals in their own right and they rely on you for their livelihood. And so while you and your team are conscientiously taking
care of your patients, the more conscientious you are, the less time you have to worry about things like financial protection for you and your family. And so, you need help making sure that your family is secure. A really important point I want to touch on right now is liability insurance. You know that there are certain specialties for which it is really difficult to get professional liability insurance at all. And there are other specialties where you can get liability insurance, but it is prohibitively expensive. And there are some doctors who are deciding not to buy professional liability insurance. Or they’re not going to carry as much professional liability insurance as they would like. If you or any of your colleagues are in that situation, you definitely need to be concerned about what you are doing to protect your assets in the event you get sued. Because now you won’t have that insurance company protecting you or fully protecting you.
You’re responsible so you need to put together your plan.
So, doctor, what do you need to do to protect your business assets, your family’s assets, and your personal assets? The keyword here is layers. Here in Northern Nevada, if I’m going for a hike in the mountains in the early spring, I know that I need to wear layers because anything can happen.
691 Sierra Rose Dr., Suite B Reno, NV 89511 775.448.6070 SierraCrestLaw.com
As a doctor, you know anything can happen. And so, what are the key layers that you need in place when you go out into the medical business world? The first layer you need is one or more corporations or limited liability companies. As you know, a corporation or limited liability company can protect the individual owner and the president of the company from personal liability for business expenses. You also know that as a doctor, you’re a license holder, and you are going to be responsible for the work of your own hands. So that’s just one layer. One other thing to say about the corporation and limited liability company layer is you can take certain parts of your business and protect them from each other. You can have a corporation that owns the building you practice in, for example, or a corporation that owns high-value medical equipment. The second layer of asset protection you really need to be conscious of is that every state has a list of certain kinds of assets that creditors just cannot touch. Here in Nevada, there are about 26 things on the list and they include retirement accounts, and what’s called a homestead exemption, so a certain amount of equity in your home can’t be touched. And there’s usually a cap in every state. It can include the car you drive to work. It’s just a long list. And so, I believe that in terms of asset protection, you want to start with that list, get the low hanging fruit, the easy stuff, and make sure that those buckets are full. So make sure you’re fully funding the retirement account, for example, and make sure that you’re aware of and taking advantage of the homestead exemption for your house. The third layer that I believe you absolutely need, especially if you’re not carrying any professional liability insurance, or you’re not carrying as much professional liability insurance as you would desire, is you need to have the Nevada Asset Protection Trust in place. Now there are some things to say about the Nevada Asset Protection Trust. One is that they can be used and are used by people all over the country. Second, the Asset Protection Trust was created by the Nevada Legislature and is a totally legitimate, above-board form of asset protection. Other states have similar trusts.
Nevada has two things that the other states don’t have. One is we have a Nevada Supreme Court case that upheld the Nevada Asset Protection Trust that basically said we’re going to enforce it and protect the trust as it was intended by the Legislature. The second thing we have is the shortest period of time to actually put the trust in place. A lot of states have long multi-year waiting periods before the money and property put in the trust is really protected from creditors. In Nevada, it’s a two-year period, and that’s the shortest period you’ll find anywhere in the country. And then another thing that can be done with the Nevada Asset Protection Trust is to set it up in a way that keeps the money and property in that trust out of the eyes of the public record. So, it’s harder for people to connect those assets with your personal name. So, I want to level with you about asset protection. As a medical professional, you know you have the skills and tools to really help patients. And you can’t do anything until they call or show up at your office. And you’ve seen instances where people are on the ball, they call you soon, and you can do a lot to help them. And you’ve also seen times when people waited, they put it off, they put it off, put it off until they had an emergency. Then they came to see you, and you could help them a little bit, but not as much as you wished and hoped that you could have helped them. It’s the same way with asset protection for you and your family. I know you have concerns and questions about asset protection. Give us a call.
691 Sierra Rose Dr., Suite B Reno, NV 89511 775.448.6070 SierraCrestLaw.com
BRAIN GAMES
FIND MORE ‘YOU’ TIME Developing a Self-Care Routine
SOLUTION
Life isn’t easy — when juggling a career, family, children, social obligations, and housework, finding time for yourself can be difficult. Studies show that roughly 59% of individuals only make time for self-care after they’ve become stressed out. Here are some ways to develop a healthy routine that suits your busy life. Become intentional. When developing a self-care ritual, it’s essential to identify your reasons behind taking better care of yourself and to pinpoint your needs. With a clear vision and motive behind your efforts, developing healthy habits to nurture and incorporate into your everyday routine becomes easier. Create large and small self-care options. You don’t need to do the same self-care ritual all the time, but make it a point to do something for yourself every day. On busier days, you may only have a moment to take a few deep breaths and mentally reset, but on other days, you may have time for a relaxing bath, massage, workout, or pedicure. Make time for hobbies. Most people find themselves constantly juggling countless tasks and obligations. With so much to do, making time for your least favorite activities likely won’t happen; instead, do something you enjoy. After all, self- care is about you! Yoga, reading, journaling, jogging, and meditating are just a few ways to get in some “you time.” If you like it, do it! Plan your self-care time. Without adding self-care to your schedule, your healthy behaviors may get placed on the back burner. Block off time for your favorite activities: Once it’s on your calendar, you’re more likely to work a routine into your day. Keep it simple. Complex rituals may create more stress or anxiety when you should be relaxing. Instead, keep it simple by focusing on relaxing, breathing, and recharging. Go for a walk in the park, take a nap, get a massage, stretch, or take a few moments to do absolutely nothing. Simplicity is the key.
ONE-PAN CHICKEN AND MUSHROOMS WITH EGG NOODLES
Inspired by MarthaStewart.com
Ingredients
• 3 slices bacon, cut into 1/2- inch pieces • 4 bone-in, skin-on chicken breasts, halved • Salt and ground pepper • 3 tbsp butter, divided • 8 oz button mushrooms, trimmed
• 8 oz shallots, peeled and halved
• 3 cups chicken broth • 1/2 cup heavy cream • 8 oz egg noodles • 1/3 cup chopped fresh dill
Directions 1. In a large pan over medium heat, cook bacon until browned, 7–9 minutes. Remove from heat, discard fat, and set aside. Season chicken with salt and pepper. Return pan to medium-high heat and melt 2 tbsp butter. Add chicken, skin-side down. Cook, turning a few times, for 10–12 minutes until browned. Transfer to a plate. 2. Place remaining 1 tbsp butter in pan to melt. Add mushrooms and shallots; cook 8–10 minutes. Add broth and cream; bring to a boil. Stir in noodles. 3. Add chicken (skin-side up), cover pan, reduce heat, and simmer, stirring once halfway through. Cook about 10–12 minutes. 4. Uncover and simmer until thickened. Stir in dill and top with bacon. Serve and enjoy!
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IF SOMETHING IN YOUR BUSINESS IS KEEPING YOU UP AT NIGHT, CALL US AT 775-448-6070. REFERRALS ARE ALSO WELCOME.
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INSIDE THIS ISSUE
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The Best Ways to Protect Your Assets
Combating Spring Allergies Hold the Cheese, Please!
One-Pan Chicken and Mushrooms With Egg Noodles Putting Together a Self-Care Routine
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Illinois’ Sip and Spit Law
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Sip … But You Must Spit Check Out This Strange Illinois Law!
By law, in the United States, the minimum legal drinking age is 21 years old. When an individual under 21 breaks the law and consumes alcohol, they are subject to arrest and hefty fines. However, there’s a loophole in Illinois. In 2012, the Illinois State Senate voted 48–6 in favor of passing a “sip and spit” law for Illinois culinary students over 18 but under the legal drinking age of 21. This strange law enabled these students to know their wine well without becoming intoxicated. The students can only sample the wines during their scheduled class times, and an adult that is 21 or older must supervise. Each sample of wine must be less than a shot’s worth in volume, and most importantly, they cannot swallow — they must just taste the wine, then spit it out. Culinary students nationwide rely on nonalcoholic wines to learn about the taste, color, and smell of wines and how to best pair them with their dishes, but
unfortunately, virgin wines taste nothing like actual wines! This leaves a gap in many culinary students’ education and may even force them to relearn the skill once they turn 21 and sample alcoholic wines. According to CBS News, Emily Williams Knight, the president of Kendall College, a private Illinois university that focuses on culinary arts, says “taste training” is an integral part of culinary education for young students, which includes learning
to pair dishes and meals with adult beverages. Understanding the different tastes and notes of various wines is essential to help these students succeed and prepare them for culinary arts and hospitality management careers. On Aug. 24, 2012, Governor Pat Quinn signed Senate Bill 758 into law so Kendall College students over 18 but younger than 21 could better develop their wine-tasting skills to enhance their culinary abilities. However, the rule is clear: Sip … but you must spit!
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