General Protective Strategies
Asset protection strategies are designed for an individual’s assets and risks and come in varying levels of protection and complexity. An individual will have to choose a level of control that he or she is comfortable with respective to the amount of protection desired.
Asset protection strategies change ownership of personal assets while providing control of them through legal instruments.
In general, a strategy that provides the most protection offers the least direct control of the assets and vice versa. If a case winds up in court the level of control of the assets will likely be used to suggest ownership.
If a protection strategy is challenged by a creditor every aspect of it and legal vehicle implemented will be scrutinized. It is the job of the opposing legal team to have an individual’s protection plan disregarded by a court. If any legal structures were improperly established or managed they can be pierced. If funds of a business entity were commingled with one’s personal affairs it’s legal separation can be disregarded. A legal opponent’s goal will be to demonstrate that asset protection vehicles are mere shell organizations without legitimate business purpose and pierce the veil of protection that they offer.
With properly established and managed legal entities, appropriate funding, a real business presence and corporate compliance a creditor will not be able to pierce it’s protection – a strategy must be properly established, funded, managed and maintained to maximize protection – this checklist can be satisfied through business programs specifically designed to meet the needs of a legitimacy test.
Choosing a Strategy
We specialize is custom asset protection strategies as well as a variety of recommended plans to meet any level of privacy and protection requirements.
Domestic Privacy and Protection
In order to establish immediate privacy and protection using simple domestic legal vehicles the use of trusts and LLCs are recommended. When an asset is titled to a trust it is no longer in the name of an individual. Property owned by a trust is owned privately providing the first layer of protection against lawsuits. Assets owned by a legitimate business entity are protected from personal liability of the business owners creating the first layer of liability protection.
These concepts can be strengthened through the use of different types of trusts and multiple business entities with additional privacy and business services.
Domestic asset protection strategies can provide a substantial level of financial security and control, be established quickly and setup to maximize the benefits one can expect.
Offshore financial havens created legal statutes that protect the personal assets of foreign investors offering individuals the strongest personal financial privacy and protection in the world.
An offshore asset protection strategy can implement the laws of multiple foreign jurisdictions combining the strongest corporate and financial privacy available. The most advanced and case law backed trust laws in the world were created specifically to attract foreign investment by individuals seeking wealth protection outside of their domestic legal system.
The biggest benefit an offshore protection strategy can offer is lawsuit deterrence and judgment proofing. Protective jurisdictions frown upon frivolous lawsuits and predatory litigation by making it very challenging, and expensive, to pursue assets encumbered in a plan using these legal instruments.
The only winners in a lawsuit are the lawyers – an offshore protection strategy can easily be the difference between being sued and not – a lawsuit avoided is a lawsuit won. In the event of a lawsuit resulting in a judgment, assets protected offshore would have to be pursued in the foreign jurisdiction because a judgment from one’s home legal jurisdiction would not be recognized in the offshore country.
Utilizing offshore legal tools can be used in concert with domestic vehicles in a single asset protection strategy. Control instruments offer individuals significant hands-on asset management with the ultimate protection of foreign legal statutes.