Bulletproof Asset Protection
In order to achieve bulletproof asset protection, step back and scan the world for the most protective laws. Accordingly, this often includes both a local and international approach. Some of the most powerful, case law backed asset protection strategies involve offshore financial havens. They use debtor-friendly legal frameworks to cater to foreign investment.
Thus, when you protect assets in a proper foreign legal jurisdiction, in can give you several favors. First, the foreign courts do not recognize court orders from your local court. Second, if held inside of an offshore trust or LLC, the legal tool is outside the reach your local court. Third, foreign banks follow local laws, and certain countries ignore foreign judgments. Consequently, these strategies create some of biggest legal hurdles one can erect. Separate assets using offshore legal tools. Hold the funds in a foreign jurisdiction.
Concerned about bank safety? Think again. Of the 50 safest banks in the world according to the most recent Global Finance report, only three are in the USA; all at the bottom half of the list. Therefore, if you are from the U.S. there are much safer banks offshore than onshore. “But U.S. banks are backed by the FDIC.” Okay, great, U.S. banks are backed by the most in-debt nation on the world, whose credit rating was just lowered by Standard & Poors. Feel better now?
Offshore financial havens offer the same legal tools and business entities. Often times their statutes provide greater protection than domestic entities.
Bulletproof Asset Protection Strategies
The most bulletproof asset protection strategies combines the strengths of multiple offshore jurisdictions. Keep in mind that First chose a jurisdiction with one of the most secure banking infrastructures, such as Switzerland. You will open the account in the name of an LLC, preferably one in the Caribbean island of Nevis. Then, set up a trust in the Cook Islands. By doing so, you can implement the world’s strongest asset protection statutes in a single strategy. Are you researching some ways to protect assets from lawsuits? Then, look into the Cook Islands trust and learn why it has protected assets for the clientele of this company in every case we have observed.
Related content: 5 Ways to Protect Assets from Lawsuits
Opening a new banking account in the name of an offshore company immediately creates financial privacy while taking advantage of the most secure financial institutions. An asset protection strategy should not limit one’s availability or access to personal assets – ATM/debit, online banking, customer service, international investments and managed services are available in any offshore financial haven.
You are In Control
You can put a company inside of an offshore trust to control assets inside. We typically use a Nevis LLC. Nevis has some highly bulletproof asset protection statutes. The manager of the company controls the day-to-day affairs of the business, which include banking transactions, investments, distributions and transfers of funds. This instrument allows an individual to manage the assets while maintaining protection. Once the “bad thing” strikes, your trustee can step and become manager in order to protect you.
An offshore asset protection trust is the final layer of financial protection. A properly established strategy allows an individual to settle a trust for the benefit one’s self. Experts establish these trusts for the protection of assets and estate planning. They place custom provisions in the trust deed. An offshore trustee carries out the administration of the trust according instructions set forth in the trust deed. These instructions include that the trustee can only distribute assets to the trust beneficiary(s).
An offshore trustee is a powerful weapon against lawsuits and judgment. This is because the trust company is duty bound to protect the assets held inside the trust. The trustee is outside of the trust settlor’s home legal jurisdiction. Therefore the trustee is not required to comply with any foreign court orders. It is one of the few strategies that work after a lawsuit is filed.
Odds in Your Favor
This generally forces a judgment creditor to pursue your assets in the foreign jurisdictions. These protective havens frown on frivolous lawsuits and predatory legal behavior by making it extremely difficult, and expensive, to sue protected foreign investors.
Your bulletproof asset protection strategy now forces you legal opponent to hire local legal counsel in the offshore jurisdictions. They will find that their laws forbid contingency fees. Some countries require a bond. With a Nevis, for example, your adversary must post a $100,000 cash bond to the court before a legal board reviews the case. Afterwards, the board decides if the can even proceed. If the board members does not allow the case to proceed they may or may not refund the bond.
Assets protected with a properly established bullet proof strategy implemented prior to a judgment are very difficult to penetrate. Techniques such the offshore trust are proven to protect assets in court.
Disclaimer: This article is about the topic of protecting assets from lawsuits. It is not in any way associated with an attorney from Las Vegas who got in trouble for allegedly selling packages to help people hide funds from the taxing authorities. Thus, we will not knowingly help people use any of these services for anything but legal purposes.