How it Works
A proper Asset Protection Plan plays multiple roles in protecting your assets. Your plan will remove a legal opponents leverage by turning the tables on the way they use the legal system to their advantage. When you start creating an asset protection plan, the first thing you do is identify all of your assets, your home, your investments, properties, vehicles, bank accounts and then get the details for each one. Once you have your list of assets you start to put them into secure containers.
When you have an asset protection plan in place, you control all of your assets, specifically, you control the entity that actually owns the assets. You are the managing partner of a legal entity, with minority ownership. You could be a 1% owner and have 100% management control and 99% of your assets are owned by the entity that you control. Just having this in place makes you a poor target for an aggressive legal opponent. Once they find out that your assets are in a protection plan like this, they no longer have a clear path to your assets and they will know that a huge payout at the end of the line isn’t possible. This is a deterring factor for your opponent. Now the attorney who was going to get a cut of the prize sees that there isn’t a prize anymore. The playing field is level at this point. Very few individuals with a solid asset protection plan ever have to activate their plan, having it makes a difference and will deter legal opposition.
When you set up your asset protection plan, you already put all of your wealth into legal structures and you place provisions in your entities so that you can move the assets within your plan. If you are in a legal battle, you move your assets so that they are not within reach of a judge or court. A very small percentage of people will actually have to go this far with an asset protection plan activation, however for those who didn’t have one in place, would wish they could rewind the clock and simply do this before they had their estate wiped out by a legal battle.