Why use Equity Stripping instead of transferring the asset into the LLC?
Many clients do choose to move their assets into Ultra Protective Nevada LLCs/FLPs to insulate their assets from any challenges they may personally have and vice versa. The downside to actually transferring some assets into a company arises when an asset has its own liability potential. For example, your home can be a potential source of liability because someone could slip on your front steps and break a leg. Since the steps of the home were the cause of the accident, the injured can go after the assets of the company that holds the home and that includes the home itself. For this reason equity stripping is another method to protect real estate when transferring the real estate property into a LLC is not a better strategy.
