Here’s How to Tell If You’ll Be One of Them(And, more importantly, how to protect yourself)
“Just because you’re paranoid doesn’t mean that someone isn’t out to get you.”
It’s a witty line. It’s also very true.
Paranoid by nature, I’ve been sued and threatened with legal action a number of times.
So have quite a few of our 15,000+ customers and clients.
Not because they did anything wrong. But because others saw they had something to take and went after them with a frivolous lawsuit.
When we first created the Lawsuit Defense Guide some years ago, a shocking 41,000 suits were filed every day across the country. Roughly 15 million cases a year.
Since then, that number has jumped to more than 40 million a year. Nearly 110,000 a day. More than one every second.
Many of these suits are frivolous. Like the woman who sued Universal Studios because the haunted house was too scary. The divorcee who sued his wife for “sperm theft”. Or the nursing student who sued Misericordia University because she failed her nursing course. Twice.
And although we might laugh at such silliness, many lawsuits – frivolous or not – can cost us a lot of time and real money… and make life very stressful.
We’re tempted to settle – even when innocent – just to avoid the hassle and cost of going to court.
Even worse, if we do “win,” we’ve still lost after legal fees are considered.
That’s why I consider such things…
Some experts call it a personal black swan. You never quite know when it will hit – only that it might. And when it does, it can be very, very bad.
But there is one key difference. No one can really predict how real black swans like COVID-19 will play out. The human and economic cost is hard to wrap our heads around.
But you CAN prepare for a frivolous lawsuit. In fact, it’s about following just three simple guidelines:
Stay invisible to lawsuit seekers as much as possible.
Structure your life and assets to be “distasteful” to lawsuit seekers if they do find you.
And if you are sued, structure your affairs to give you the upper hand in any negotiation. In many cases, the people suing you will settle for pennies on the dollar or go away knowing they were beat.
That’s what this letter is about – how to prepare for yourself before it’s too late.
(And yes, being “too late” is important in these discussions. Thanks to a concept called “fraudulent conveyance”, once someone has targeted you, there’s little to do but pay up. Such planning needs to be done before you see clouds on the horizon.)
The post-lockdown recession is in full effect as I write this. According to CNN, consumer prices have started to fall. We could indeed be entering deflation, which will continue to hurt the economy in a big way.
More people will lose their jobs and be unable to buy essentials. This will hurt firms already struggling to deal with the pandemic. So they’ll lay off more workers, who will struggle to buy essentials… and on and on in a vicious downward spiral.
As this happens, people get more desperate. As they get more desperate, they do desperate things… like launch frivolous lawsuits.
That’s why I believe the “Era of Corona” could also be a “Golden Age for Lawsuits”. If you have assets to protect (even just your primary residence), you have a much greater chance of being a target.
And, because America is mostly a no-privacy jurisdiction, it’s very easy for bottom-feeders to find out your net worth and make you a target.
I want to help you avoid that.
After 30 years in the business, working with more than 15,000 customers and clients from all walks of life, I’ve probably, in the words of one well-known investment publisher:
“Forgotten more than most 'experts' know on this topic.”
Flattering as that is, there’s some truth there. I take pride in having worked with my team to help so many people over the years.
And over those years, we’ve identified dozens of highly effective strategies you can use to stop frivolous lawsuits of all type BEFORE they cause you any trouble.
No matter what the economic conditions.
How to make yourself invisible. The best lawsuit is one that never happens. That starts by hiding your assets from prying eyes. If they can’t find it, they can’t take it.
How to use built-in protections. Few people seem to know that federal and state laws offer you some protection – especially for your home and some retirement accounts. They are usually free and, depending on where you live, can be substantial. But you need to know (and in some cases, opt-in) to benefit.
How to build protective barriers around your assets.If you are attacked, you want to have the upper hand in any negotiation. At best, they’ll just go away. At worst, they’ll have to settle for pennies on the dollar.
How to use international strategies for complete protection. For the highest-risk clients, holding your wealth outside the US is the ultimate privacy and protection plan. If you know how to use these strategies properly.
Here’s how it breaks down:
Chapter One: Understanding the World of Frivolous Lawsuits
If the idea of frivolous lawsuits is new to you, read this chapter first. You’ll learn:
The 4 Rules of Frivolous Lawsuit Protection
Amazing but real-life examples of how such lawsuits affect real people
Chapter Two: The History of Frivolous Lawsuits
Although not the most “actionable” chapter in the guide, it does give you a good understanding of how we ended up in this mess – where almost anyone can be sued for anything with very little legal basis. You’ll learn:
The shockingly low cost of launching a lawsuit in the U.S.
The criteria “bottom-feeding lawyers” use when looking for a target
Understanding the newest threat in the world of frivolous lawsuits – “social host liability” (you might think twice the next time you host a party)
Understanding “intentional tort” and how it affects your ability to plan for and defend yourself from lawsuits
Chapter Three: How to Avoid Lawsuits in the First Place
The best lawsuit is one that never happens. That’s why your first job is to lower the chances of being targeted in the first place. This chapter shows you how to do that.
The cautionary tale of a verbal agreement that was enforced as a legal contract by the court (and the six criteria that led to the decision)
A surprising way for small businesses to be sued (23% of respondents in one survey said their firm had been sued or threatened with legal action over this all-too common mistake)
Why “my dog ate the evidence” is not a valid excuse when it comes to a civil suit. In fact, it makes you even more vulnerable to legal action (as international bank Barclays learned the hard way)
10 specific strategies you can take to reduce Your Personal Risk Factor™ and avoid a lawsuit in the first place
Chapter Four: Your First Line of Defense
Many people tend to make asset protection – especially against lawsuits – overly complicated. But the truth is, there are probably some simple and easy steps you can take to protect yourself at little cost or time. Depending on where you live, you might have protections encoded in law (although in some cases, you must specifically ask for such protection ahead of time).
This chapter covers all the basics. For lower-risk clients, this may be all you need.
Understanding the huge differences between federal and state protections when it comes to your savings, investment portfolio and your home.
The proper first line of defense against any frivolous claims. Although it’s often much cheaper than comparable products, very few people seem to know about it. You soon will.
Understanding homestead laws and how it should fit into your overall lawsuit defense plan.
An ingenious and very simple way to use “debt” to make your home unattractive to lawsuit seekers.
For married readers living in one of these 22 states: How to use your wedding vows to better protect your home from a lawsuit.
Understanding the laws and regulations that protect your 401(k), IRAs and SEPs (or don’t, depending on where you live).
Chapter Five: The Ultimate Invisibility Cloak
A lot of our more advanced anti-lawsuit planning revolves around the principle of: If you don’t own it, they can’t take it.
Or, in other words – if your assets aren’t in your name, it’s (much) harder for them to be taken away, or even found in the first place.
This chapter shows you how this plays out in the real world. That includes:
How to use trusts to throw an “invisibility cloak” around your assets.
How to use (properly structured) Irrevocable Trusts to make it a waste of time to launch a lawsuit against you.
How to use Domestic Asset Protection Trusts to your advantage – where, when and when not.
How to use the lesson of “Bubble & Squeak” to better insulate your assets from a frivolous claim.
Chapter Six: Your Overseas Safe Haven
There are many reasons to consider the world of international structures as part of a complete plan.
Chief among them is that most foreign courts don’t allow frivolous lawsuits. Or let potential claimants target you in the first place.
That said, you really don’t need this if Your Personal Risk Factor™ is low or your net worth doesn’t justify the expense of doing so. But, if you are quite exposed, it’s worth learning:
4 powerful ways in which a foreign structure could make you effectively “bulletproof” to frivolous lawsuits
A “unique” way (at least to American ears) to set up a built-for-purpose asset protection structure in two days
What you absolutely need to know before you “go global”
Chapter Seven: The Complete Asset Protection Solution
In this final chapter, we tie all the elements covered into one complete plan. You’ll discover:
The two best countries for complete asset protection
8 Reasons to love Nevis for American-focused US lawsuit defense planning
For those with the highest Personal Risk Factor™: How to use International Asset Protection Trusts to build a virtually impenetrable moat around your assets
Details on the ultimate escape hatch: Powerful but to be used with extreme caution
Admittedly, not everyone will need something like this. It’s for clients with a higher-risk factor and who have the net worth to invest in such a heavy-duty structure.
Which brings me to the larger question…
Although designed for American readers, this report will best serve:
Homeowners: Owning a home has traditionally been a wonderful way to store wealth. But there’s a risk every time someone steps on your property – from visitors to yard maintenance to the local handyman. A barking dog has been known to trigger a lawsuit, as has too much tree shade thrown into the neighbor’s yard.
Small Business Owners: Being a business owner is risky. You might miss revenue targets, you are committed to overhead in the form of office/retail space and employees, and you still have to feed your family in the process.
And then there’s the legal minefield. You can be sued (with or without cause) by ex-employees, ex-partners, customers and clients.
You could also be attacked by strangers who invoke little-known regulations to “extort” a settlement. Maybe that’s why more than half of all civil suits are filed against small businesses.
Licensed Professionals: Doctors are especially likely to be sued for malpractice at least once in their career (and a 1 in 5 chance they’ll be sued this year). Due to the nature of their work, judgements can be very high indeed. In extreme cases, this can ruin years of hard work.
To some degree, this plays out across all sorts of licensed professionals, depending on how important their work is to a client’s health and (financial) wellbeing.
Real Estate Investors: We’ve worked with many professional real estate investors over the years and found that the more doors they have, the higher the threat of an incoming lawsuit. If improperly structured, liability on one property can “bleed” into the whole portfolio.
Retirees on Fixed Income: Retirees are a little different in that they aren’t (usually) exposed to the same risk as other groups. On the other hand, any big loss to their nest egg can be catastrophic.
In most cases, we recommend low-cost, easy-to-implement strategies (including state protections) such as you’ll find early in The Lawsuit Defense Guide.
High-Level Executives: Most of the time, mistakes made by employees are covered under your firm’s insurance. But sometimes, executives are on the hook for some responsibility. If you’re in this boat, for peace of mind, you need a separate strategy that protects you in case your firm will not.
The Wealthy ($1 million+ in liquid assets): It’s estimated that those making more than a $1 million a year spend $20,000 of it on lawsuit defense. The fact is, just having wealth in our country is like a superpowered magnet – attracting those who want a quick payday without risk.
Interestingly, a lot of people think a frivolous lawsuit either:
Can’t happen to them.
Is “frivolous” and thus not something the court will take seriously.
In the first case, given that 40,000,000 lawsuits are filed a year – skewed against people who have any level of assets – it’s foolish to think that you can’t be a target.
But on the second point, there is some truth. And that can be hard part to explain.
It doesn’t matter if it’s “frivolous”. You will still lose money.
Within the Lawsuit Defense Guide, you’ll learn of cases that should never have gone anywhere – and ultimately didn’t – but still cost the defendants thousands of dollars in legal fees.
Jin and Soo Chung, dry cleaners in Washington DC, are one such terrifying example. They found themselves on the wrong end of a $67 million lawsuit… for losing a customer’s pants.
Obviously, the ludicrous case was eventually thrown out, but not before the Chungs racked up $100,000 in legal bills. That’s a lot of money for a small business like theirs.
Even though the lawsuit was a joke, they were forced to pay all that money to defend themselves. Plus the huge stress of dealing with the mess. And they lost the business in the process.
Yes, a frivolous lawsuit can attack almost anyone at any time. The key is to avoid them if you can, and build your defenses in the good times, just in case one comes after you.
The Lawsuit Defense Guide will help you do that.
Just $49. Protected by our standard full money-back guarantee.
Throughout this letter, I’ve tried to make the case on why you need to protect yourself from the threat of lawsuits.
I’ve outlined a very specific set of strategies for how to do it, based on Your Personal Risk Factor™.
And documented what you’ll learn chapter by chapter.
Even so, I don’t expect you to take my word for it.
Instead, try it out for 60 days. If it doesn’t provide at least one strategy you can really use – or you’re not happy for any other reason – simply get in touch for a refund.
Over the last decade or so, there’s been a small but growing investor opportunity called “litigation finance”.
Investors put money up to help individuals and companies sue other individuals and companies.
According to a 2018 report by the Economist, it’s estimated to be “probably worth more than $1 billion today.”
I don’t doubt that number has grown since then.
And although it seems that many of the lawsuits currently being funded actually have merit, it’s very easy to see how frivolous lawsuits will become part of the game. They can be so lucrative with virtually no risk to the person launching the suit.
For those of us with a higher risk profile, that’s very worrying. As it should be.
Your best defense is to avoid becoming a target in the first place. And have the right defenses in place just in case they do.
The Lawsuit Defense Guide will show you how.
I guarantee it. Just click the button below to get started.
Founder, The Nestmann Group