Ways to Hide Assets from Creditors, Divorce, and Lawsuits
HOW TO HIDE ASSETS: Trusts
First and foremost, you must know, yes there are ways to hide assets from creditors, divorce and lawsuits. And you can do it legally. You need to take this action early and honestly, however to avoid the suspicion of defrauding a creditor. In other words, it is best of you don’t wait to act. Don’t delay until a lawsuit happens before you decide to transfer your assets to a trust or other asset protection entity. This website provides a wealth of information and a free consultation if you’d like. We will talk about how to move your assets legally and how to keep them safe.
Now, just to be clear, this organization utilizes a multitude of techniques. Some hide assets. Others actually protect assets. What’s hidden can be found. But what’s protected, even if discovered, is still protected. And we think that’s what most people want, anyway, asset protection. Many people search the internet using the word “hide” and that’s what may have lead you here. So, that is the main reason we will use both the words protect and hide.
So, to hide or protect your assets from creditors or divorce, there are a couple of obvious options for you. This website covers them extensively. For your personal assets, such as your home you can hide your ownership in a land trust; and your cars you can hide in title holding trusts. These documents can keep your association with these items out of the public records. There are several recommended domestic trusts discussed in detail right here on this page.
Domestic trusts do offer better protection for your personal assets than no trust at all. But the safest and most secure place for your liquid assets is an offshore asset protection trust. On of the most effective jurisdictions is the Cook Islands Trust. This trust has been court-tested and has a case law proven track record showing that effectively protects assets. Not that we would set up asset protection for this purpose, but it has even survived challenges initiated by the U.S. government on two occasions. It’s rock-solid.
HOW TO HIDE ASSETS: Business Entities
If you own a business, it would usually be wise to establish a business entity such as a corporation or an LLC. Corporations and Limited Liability Companies offer business assets security. They provide protection sole proprietorships or partnerships do not offer. It so happens that this organization has expertise in setting these up. The company has over 40 years’ experience and a track record of customer happiness. So, if you own business assets and you have not yet created an entity for it, what are you waiting for? This needs to have been done last week for you, your family’s, and your employee’s protection.
The main takeaway here is that these processes are best started before a lawsuit begins. If attempting to deprive creditors at the last minute after someone files a lawsuit against you, know that a court will take interest in your recent asset transfers. They may see the last-minute formation of a trust as fraudulent conveyance. That is why addressing your asset protection today can be crucial to your financial safety. If someone has already served you with a lawsuit, or you know one is on the way, you can still institute an asset protection plan. But know it is better, much better, to do so beforehand.
HOW TO HIDE ASSETS: Move Swiftly
Moving your assets now, or before any hint of legal trouble can help keep them safe and contained. Specifically, the use of offshore trusts and other asset protection entities makes it even more difficult for domestic financial predators to encroach on your wealth. The best part: this is perfectly legal. If something is legal and you are better off doing it than putting it off, it might just be time to take action.
Let’s create a little scenario to paint a picture to show how this is done. We will do this before bogging you down with the technical aspects of it all. Let’s say Jonathan has $230,000 worth of assets. They include home equity, funds in a savings account, and a paid-off RV. What Jonathan needs to do with these personal assets is to put them in an the proper legal tools. You can place the home in a land trust and mortgage it to the hilt. You can put the RV into a title holding trust and borrow money using it as security. The liquid assets, including the proceeds from the two assets mentioned here, are place into an offshore asset protection trust.
He’s smart because he’s doing it now, before he can even fathom a lawsuit coming his way. He reads the literature and knows the Cook Islands Trust, for instance, proves itself effective and consistently exceeds expectations.
Safe and Secure
Jonathan now has the meat of his assets in an offshore trust. Wham! A lawsuit is filed against him, he’s a young doctor who is being charged with a challenging malpractice lawsuit that far exceeds his insurance limits. He knows he may lose the case. He also knows, however, that his assets are in the Cook Islands. His local courts do not have jurisdiction over foreign trustees, so taking them is hard if not nearly impossible to do. The most he stands to lose from the lawsuit is what is readily available domestically. Jonathan made the right choice. Consider the other point made. You have protections if you are a business owner as well, and you have prudently formed an entity, a corporation or LLC, rather than remained a sole proprietor.
Cook Islands Trust
Back to personal trusts. The Cook Islands Trust does not even recognize domestic judgments. If a court is interested in seizing your assets and they can make a phone call to the trust company. The most they will get is a someone who will turn a deaf ear to them, who is not under their jurisdiction. Essentially what this trustee is saying when or if they get a call like this is, “Sorry I can’t help you. It is my legal obligation to protect my client and their assets. Your courts don’t have any say-so here.” Again, this is perfectly legal. You can expect the trust to carefully manage your assets only when you get into legal trouble. When that’s over they simply put the ball back in your court.
Misinformation from Unscrupulous Creditors on the Internet
There is a lot of negative information on the internet about taking these actions (domestic or offshore trusts, forming a business entity). But creditors publish most of that information in order to throw you off course. You are likely to find these financial predators refer to people who make these intelligent actions as scoundrels, or deceptive. It’s clear what their goal is though. They want you unprotected so they have easy access to your money. Things become much easier for them when they find a defendant with “easy-to-reach” domestic assets. Most trial lawyers don’t produce. They take. They want a payday. And they way to get one is by taking from those of us who do produce.
That said, it’s important to ignore these persuasive, self-serving, and even cruel articles you may find on the internet to try to dissuade you from protecting your assets in a divorce or other lawsuit. Remember when we discussed that opening trusts and forming protective entities before legal trouble is legal? What these creditors who post their dirty laundry all over the web are doing is they are saying, “Yes, it’s legal, but we don’t like it.” Well, too bad!
Consumers are not at the mercy of creditors unless they allow themselves to be. Therefore, it’s extremely important to start the process of opening a trust, if appropriate for your needs right now. Then form the other asset protection entities that suit your needs. Beat them to the punch. You are outsmarting them and you are legally doing so. Those with the means to sue the little guy will stop at nothing to get your assets, to line their pockets with your money.
Business Entities, Retirement Accounts, Asset Protection Trusts
For those of you who would like another way, other than a trust to hide your money legally, consider forming an LLC or corporation. The LLC, for instance, can protect the entity, assets and the owner. You also have the option to anonymously contribute to the assets of your LLC. Other friends and family also can get involved with your entity, protecting them as well. Forming an entity provides many protections. So be sure to peruse this website for further information on how, why and when to do so.
We hope you’re reading this article because you’re already considering one of these options. This article is intended to get your thinking-wheels turning, but it’s only a primer for the wealth of information you can find browsing the site. What we need to say again and again is that there’s no time to waste. Protecting yourself now decreases the suspicion you were feverishly transferring assets at the first sight of a lawsuit.
Retirement Account Limitations
People often ask if they can legally hide assets in a retirement account. The short answer is “yes,” but it’s probably not sufficient. Keep in mind that retirement accounts are great places to hide a certain amount of money. In other words, the federal government places yearly restrictions on the amount of funds that you can deposit into these accounts. Also, access to these funds is generally crippled. Usually you will not have tax-free access to these funds until an established age, usually around age 59 1/2.
Conversely, with asset protection trusts you are giving control of your assets only in the event of a lawsuit. In other words, you don’t want easy access to your funds during a lawsuit. Easy access essentially allows the court to say “you got it, give it up.” With the establishment of an asset protection trust you retain full control over your assets but trust a trustee during litigation.
Cook Islands Trust is just south of Hawaii, and in the same time zone. The only time a trustee steps in to manage your funds is when you are in legal trouble. Think of it as giving your assets to your most trusted ally, while your husband’s mobster friends are visiting for dinner. Smart move, right?
Some people seem a bit hesitant to put their assets in an offshore trust, and understandably so. This is only understandable because we go through most of our lives not dealing with anyone internationally except for the technical support guy in India. Now suddenly, we’re being recommended to consider putting our assets overseas. Clearly that can make the average person to ask questions.
This, though, is why the average person remains the average person. Lack of knowledge allows these people to be bullied by the system. The United States in all its glory is quite an attraction, but there are other countries with secure banking systems and political climates.
Put the Odds in Your Favor
Do the math. What if there was a 100% chance of having your money taken by the courts if you left the money at home? What if there was a way to provide nearly 100% certain protection of that same money by keeping in an offshore trust? And what if you could have online viewing and debit card access to your funds 24 hours per day? Don’t let fear of the unknown leave you on a street corner with your pockets hanging inside out. Get educated.
Ever search for “world’s safest banks?” Can you guess how many U.S. banks are in the top 30 in the world for safety? Would you think 28? 15? 5? How about zero. That’s right there are not any banks in the U.S. in the top 30 for safety. In fact, as of this writing, the US only has 3 banks out of 50 on the safest banks in the world list.
The first step you need to take with an offshore trust is to ask yourself, “Am I possibly being too cautious?” The answer is that it depends on whether or not you are willing to risk your assets to opposing lawyers. This company has tremendous experience and access to the offshore trusts and banking world. This is why we have an advantageous view to share with you. Mostly, this is based on decades of working with offshore trusts and banks and the formation of trusts, LLCs and corporations.
To get the discussion started, a consultation is helpful, free and suggested. Our perception of offshore trust safety is likely worlds different than yours. The difference is we’ve been dealing with them extensively over the years. Therefore, we can share some insights and benefits that you may want to take advantage of.