Three Reasons Asset Protection Is Right For You

22 Jul Three Reasons Asset Protection Is Right For You

Asset Protection Strategies Legal Tools.

Asset protection strategies are a set of disciplines and legal tools affluent families, public figures, politicians and Fortune 500 companies have used for years. These hidden secrets are now becoming mainstream planning as Asset Protection Strategies. One powerful hidden gem utilized today is an Asset Protection Trust domestic or offshore. These trusts shield family assets from lawsuits and creditors. Legal barriers are formed that shield your family home, vacation home, rental properties, savings accounts, brokerage accounts, investments, life insurance policies and business from malicious creditors or a dreaded lawsuit. Utilizing a legal combination of offshore business structures and estate planning trusts you can have an effective Asset Protection Strategy that’s as secure as a bank vault. No person wants to get sued or involved in a legal battle. Public Record Notices in your local newspaper open the door to negative publicity which is embarrassing and exhausting. All your private information becomes fresh meat to collection agencies, your business competitors and malicious fraudsters. Most of us cannot afford the surmounting losses in social capital, damages to your business or personal brand. As you know Brand Equity takes years to build and can be destroyed in mere minutes. Imagine, if a customer slips on a freshly mopped floor or running over a child that darts in front of your car. The all too common alleged sexual harassment suit between your employees and another co-worker.  As the employer liability looms all around your place of business. The danger of litigation and creditor claims become endless. It’s not if you will be sued but when and by who.

A lawsuit is the suicide of time. Thomas A. Edison

Your carefully designed Asset Protection Strategy properly established performs three essential function in asset protection. First, as a lawsuit deterrent. Litigation costs are expensive and winning the case is only the first step in a successful court battle. Collecting on an awarded judgement is another legal issue. Especially when you the savvy defendant has been armed with a comprehensive Asset Protection Strategy. The plaintiff’s attorney must find your assets and determine if you are the lawful owner, controller or trustee of the estate assets. Hidden gems that must be mentioned are the type of ownership and title you hold on these assets. This secret weapon in your arsenal is the legal structure housing these assets and who is the legal owner. Various strategies apply in holding title that can block all access points used by attorneys or creditors. Preplanning is vital at this stage. Thus, creating a secure vault before the plaintiff’s attorney attempts to penetrate your assets. The procrastinator waits missing out on the numerous benefits accompanying a creditable Asset Protection Strategy. Implementing your strategy immediately before the need occurs is always the better policy. The time and date of establishment serves in demising an all to common accusation of fraudulent transfer by the plaintiff attorneys. This tactic is used often and becomes an ineffective effort to penetrate your Asset Protection Strategy. Fortify and establish your plan before or early in the proceedings. Don’t procrastinate and give any advantage to your opponent.

An effective Asset Protection Strategy gives your negotiating leverage. Second, settlement negotiation leverage. Asset market values, equity and cash values must be determined.  Part of your well designed domestic and offshore asset protection strategy should protect your real estate equity. The advanced planning advisor will implement another little know gem as an equity protection component to your asset protection strategy. The plaintiff’s attorney will utilize the services of a private investigator to find out what you own, assessed value and your net worth. The findings will be used by the plaintiff’s attorney in determining the amount designated in the formal complaint. When your attorney responds to the formal complaint, these findings become negotiating leverage for your attorney. Certain legal triggers will be built into your Asset Protection Strategy that relinquish your from management, control and title during a lawsuit. These triggers are for your protection and preservation of your assets. Your team of legal professionals, trustees, managers and controllers should respond to court demands on your behalf. Insulating your assets temporarily during the lawsuit and settlement proceedings. Your legal advisor usually coaches you through what can be stated accurately, must be stated according to the courts demands and how these statements should be none incriminating. It is recommended that you consult an attorney, legal advisor, financial advisor and tax experts that understand this level of comprehensive planning.

Third, the cost of collecting is far greater than the legal costs to enter the fight. Some international jurisdictions require a plaintiff to post a huge bond before allegations can be filed or heard by the courts against you the defendant. Especially, when the purpose of the proceedings it to invade and collect assets by judgement order from another country. Its worth noting not every country is legally obligated to comply with US court awards and judgements. The question the plaintiff must ask themselves at some point. Do the insurmountable costs outweigh chasing an awarded judgement international courts may set aside? Can the plaintiff afford the time involved? Next, the realization that penetrating the asset protection veil in the US is not always a win. When going abroad to lay claim on assets international law and courts may not give a favorable outcome. This intentional complexity of international law, corporate law, international fiduciary rules and trust laws are utilized to weave a complex web of protection within your Asset Protection Strategy. This is a gamble most plaintiffs are not willing to take. The plaintiffs’ attorney will more than likely advise their client to take a discounted settlement offer and cut their losses. It’s been said, the first person that no longer can pay the expensive retainer fees to their attorney will lose. A properly implemented asset protection strategy with multiply barriers of protection wins in the end.

Know what you own and know why you own it. Peter Lynch

Protecting your assets from lawsuits, creditors and fraudsters takes meticulous planning. Remember, if it is so easy to put together it maybe even easier to dismantle. The time, costs, research and planning are minuscule compared to potential loses. An effective asset protection strategy will take unconventional thinking. We usually are focused on acquiring assets and investing for retirement not how do we protect our estate from a lawsuit. Remember, fraudsters are opportunists who never slumber. They are always on the prowl for the next affluent victim with bank accounts, investments, good credit, built up equity and no protection. Jetsetter’s and affluent travelers are easy targets. The biggest gamble you will ever take, is not being protected. Shift you’re thinking to investment rather than expense. It is a wise investment to retain experts to design and asset protection strategy to fortify my assets.  “I would rather have fire insurance and never need it. Then standing in the front yard wish we had purchased the insurance policy while our home burns to the ground.” Gamblers always win when they leave the table with their winnings. Litigation is no different. Defendants that lose walkaway wondering if it were possible to protect their family and finances. Inside the walls of a courtroom a dangerous game is played between defendant and plaintiff attorneys. This is not the battleground to enter without an Asset Protection Strategy implemented in full force. Comprehensive planning, strategy and implementation can win in the end. Seek out specialists in domestic and offshore business structures such as limited liability company (LLC), partnerships and offshore trusts.

Disclosure: LBG Advisor, Liberty Benefits Group, LLC employees, advisors or affiliates do not recommend at any time, to any person or entity to utilize asset protection strategies to evade taxes, commit fraudulent acts or transfers or money laundering of any kind. Everything is this article is intended for illustration purposes ONLY and generalized statements and understandings of concepts ONLY. The laws in your individual state, region, jurisdiction or country may vary.  This article is only the views and opinions of the article writer and is not to be interpreted as financial adviser, legal advice or tax advice from a professional. LBG Advisor, Liberty Benefits Group, LLC employees, advisors and affiliates recommend you seek out experts for all legal and tax advise as it pertains to your individual situation and circumstances. LBG Advisor, Liberty Benefits Group, LLC and their employees, advisors and affiliates will not be liable for the misuse or misinterpretation of information used in this article. Anyone, person or entity distributing or using this article without the expressed rights or license issued from LBG Advisor, Liberty Benefits Group, LLC or its affiliates will be prosecuted to the fullest extent of the law.