Properly established asset protection plans provide layers of financial security and peace of mind before, during and after a legal storm.
Before a Lawsuit
Asset protection planning instruments provide financial privacy that reduce your wealth signature from prying eyes.
We have all heard of a few hallmark lawsuits whereby a person has sued a big business for millions of dollars. Probably the most famous is the suit against the McDonald’s Corporation for serving coffee in a drive-thru that a customer spilled on themselves resulting in a minor burn.
A case such as this would have contingent lawyers lining up with dollar signs in their eyes, everybody knows that the McDonald’s Corporation is a deep-pocket defendant and a judgment would certainly be satisfied.
Had the same exact coffee incident happened at a “mom-and-pops” coffee stand a lawsuit claim of damages in the millions of dollars would be impossible and the amount of lawyers that would take the case on contingency would be few or none.
One of the primary benefits of financial privacy through asset protection planning is that your wealth signature is reduced and an individual can appear to be a poor lawsuit target, regardless of how many assets one possesses.
The only way to “win” a lawsuit, is to avoid it.
During a Lawsuit or Litigation
If a lawsuit cannot be avoided and litigation starts an individual’s asset protection plan can make for a much more favorable outcome and a much shorter process.
Properly protected assets behind strong planning tools can be accessed by the individual for any purpose, however not necessarily by a court order. In this case a legal opponent is faced with recognizing that your assets are not readily available or near impossible to seize, therefore substantial negotiating power is held by the defendant.
After a Lawsuit – Judgments
There are planning tools available that can make an individual judgment proof – that even in the event of a legal battle resulting in a judgment, one’s assets are protected.
This level of asset protection is the strongest available and it requires a properly established and maintained asset protection trust. Individual’s have the option of creating one of these trusts in several states and a few foreign jurisdictions. It is through these instruments where one’s assets are completely separated from their name and encumbered in a trust settled for the benefit of one’s self. The individual can benefit from the trust assets that include property, investments, savings and receive monetary distributions that cannot be used to satisfy a judgment or be distributed to any other entity or individual.
The Big Picture
Asset protection planning provides immediate benefits to an individual or family’s financial future whereby the level of protection is up to one’s comfort level, liability, risk and assets. These tools can be setup relatively quickly and affordably.