Paul Elio Has Transfered His Home To A Trust To Protect It From Being Seized?

[Smitty901]

Revocable living trust is not a loop hole for protecting assets . Incorporating is the way you protect personal assets from those of the company.

Revocable living trust is a responsible way to protect your family. Each state has some differences but you avoid probate. That allows you to keep other peoples nose out of you business. Is it often done by many of us as we age to ensure a smooth transfer after death. Wife and I set one up as we prepared for my retirement. For the most part it replaces a will. You generally still have one but that is to cover anything not listed in the trust , you die the trustee takes over done deal. Allows thing to happen much faster. Of course always seek Good legal counsel in these madders.
This is not some indication ELIO is about to bail or go under.

 

[Coss]

You guys have it all wrong. You put things into a trust because you need to make sure that if something happens to you, someone else will take over and manage it. You don't do this if you are going bankrupt as you will get in a heap of trouble if you do. What you really do is sell everything you have, then just lease what you need. Take the money and stick it in an offshore account. With Elio, I can see that something like this was done because something big is going to happen and it went from being a startup to a major corporation. You need your assets taken care of because you can't predict the future. For all we know, Paul could have a massive heart attack and pass away. Last thing that is needed is for Elio to shut down, but for it to continue.

This is normal business and in my opinion, something big and good is going to happen. Again, that's my opinion and don't take it as fact. I do know that transferring things into a trust is no big deal. Even today, CEO's of major corporations are being sued personally because they have misled deals between companies. The day of hiding behind a corporation doesn't work. Plus with a trust, they can still go after that if needed.

What do you do for normal line of work?

 

[Ekh]

We've transferred our house to a trust (along with other assets) to avoid probate and to protect a kid with medical issues who would lose her benefits if she came into a chunk of money. It's just basic middle class stuff; we're not wealthy, but we are prudent.

Most likely, that's all it is in Paul's case, too. Besides, most states have laws that prevent one's house being part of a bankruptcy proceeding.

Stop looking for trouble and writing inflammatory headlines when you have ZERO idea what the actual situation is. That is trollish behavior. Shame on you.

 

[Smitty901]

Good to see at least some understand the need to do proper estate planning ahead of time. So often in our society today people do not live up to responsibilities. As EHK says you do not have to be wealthy to use the tools given you. Proper planning allows you to spread out duties so not everything is dumped on one person . Along with it you deal with Healthcare power of attorney.
As in EKH case we have a disabled granddaughter the trust allows us to have control over how she is treated by our estate rather than some government worker. Who will not have her interest number one.
It is never to early to get you affairs in order. As things change over the years you can update it as needed. You work a life time to built your estate, ensure it is passed on and protected the right way.
If anything this shows PE is a prudent man and living up to his responsibilities.

 

[RSchneider]

I do consulting work for manufacturing engineering. I have worked on everything from automotive all the way down to startups. What i have seen is a small startup can get big and the owners don't realize that they need to protect themselves and plan for disasters (fire, death, lawsuits, etc...). When you are just in the initial stages, you don't have a target on your back. When you are going to spool up for production it's still not that big. When you start to hire people it gets bigger and when you mass produce a consumer product, it becomes really big.

People assume that if you own a big company or the CEO, that you have lots of money and thus, they will figure out some way to get it out of you. This is why people will sue McDonalds but not some small pizza joint. In addition to that, you don;t want all of the vultures coming in if you die or become incapacitated. This happened to my friends uncle. He had 4 small food stores and investment property in FL. He got into an accident and was in a coma for a month. Nobody knew what to do and then all of the vultures came in and wanted the family to sell everything because it would be the right thing to do. Obviously, these people wanted to sell the assets. In the end, when he got better, he set up trusts so there was a game plan if something like this was going to happen again. It's smart business, especially when it's big and out in the public eye. This product will really be out in the public eye when they are making 250K/year.

I suspect, this is where Elio is right now and in the next year, the assets of the business are going to go up due to getting closer to production. You have to buy lots of tooling, stamps, molds, jigs and equipment (even though the GM plant has equipment, it won't have everything they need). You need to invest into getting the line programmed because it's not a turn key operation. Top that off with leasing buildings for sales and marshalling centers because they need to be outfitted. Then there's distribution (which requires even more equipment). The list goes on and on. This is something that is more complex that a custom fishing reel or toy. Plus, it's distribution plus service after the sale is a big investment (parts, warranty, etc). Getting all of the legal issues done now is the way to do it, not when you are in the middle of trying to get all of these other things accomplished. Up until now it's been easy for Elio, commercialization is where the real work begins.

 

[Ty]

I do consulting work for manufacturing engineering. I have worked on everything from automotive all the way down to startups. What i have seen is a small startup can get big and the owners don't realize that they need to protect themselves and plan for disasters (fire, death, lawsuits, etc...). When you are just in the initial stages, you don't have a target on your back. When you are going to spool up for production it's still not that big. When you start to hire people it gets bigger and when you mass produce a consumer product, it becomes really big.

People assume that if you own a big company or the CEO, that you have lots of money and thus, they will figure out some way to get it out of you. This is why people will sue McDonalds but not some small pizza joint. In addition to that, you don;t want all of the vultures coming in if you die or become incapacitated. This happened to my friends uncle. He had 4 small food stores and investment property in FL. He got into an accident and was in a coma for a month. Nobody knew what to do and then all of the vultures came in and wanted the family to sell everything because it would be the right thing to do. Obviously, these people wanted to sell the assets. In the end, when he got better, he set up trusts so there was a game plan if something like this was going to happen again. It's smart business, especially when it's big and out in the public eye. This product will really be out in the public eye when they are making 250K/year.

I suspect, this is where Elio is right now and in the next year, the assets of the business are going to go up due to getting closer to production. You have to buy lots of tooling, stamps, molds, jigs and equipment (even though the GM plant has equipment, it won't have everything they need). You need to invest into getting the line programmed because it's not a turn key operation. Top that off with leasing buildings for sales and marshalling centers because they need to be outfitted. Then there's distribution (which requires even more equipment). The list goes on and on. This is something that is more complex that a custom fishing reel or toy. Plus, it's distribution plus service after the sale is a big investment (parts, warranty, etc). Getting all of the legal issues done now is the way to do it, not when you are in the middle of trying to get all of these other things accomplished. Up until now it's been easy for Elio, commercialization is where the real work begins.

Good break down of the situation there. Keep in mind Elio has set up distribution (basically, they are outsourcing that part) and marshaling centers won't require much in the way of set-up. I'd be surprised if Elio doesn't contract out the delivery of Elios from marshaling centers to stores.

 

[Marshall]

I find it funny that everything Paul does is OMINOUS to some. To me, it just seems like evidence that he's been around lawyers lately. They always want to help out with some legal maneuver.

 

[Coss]

I find it funny that everything Paul does is OMINOUS to some. To me, it just seems like evidence that he's been around lawyers lately. They always want to help out with some legal maneuver.

Why? The lawyers always follow the money. And it only seems ominous because you aren't in on it when It's being brought up, you only hear the after effects.

 

[Smitty901]

Estate planning with a Trust is common. Most responsible people do it. You know we just had all the talk about PE birthday.
Events like that often are trigger points for getting estate plans up to date. Reading way to much into this. Now if he was forming a couple corruptions and moving assets. We might have something to talk about. The trust thing has been well explained.
The trust is not away to protect PE from creditors it does not work that way.

 

[Smitty901]

Estate planning with a Trust is common. Most responsible people do it. You know we just had all the talk about PE birthday.
Events like that often are trigger points for getting estate plans up to date. Reading way to much into this. Now if he was forming a couple corruptions and moving assets. We might have something to talk about. The trust thing has been well explained.
The trust is not away to protect PE from creditors it does not work that way.