Hiding Assets Before a Lawsuit
How do you hide assets before a lawsuit? It’s time right now to be thinking about protecting your assets. You know, those items and wealth you have worked your entire life for – and if taken away would leave you devastated. There is a wealth of information about asset protection on this website. Let’s define what an asset specifically is. Assets are those items, or that wealth of value that you own. You have earned your assets. Current assets, for instance, are cash items such as fixed deposits, stocks, bonds, etc.
Other assets include your home equity – all that wealth of which you obtained with your blood, sweat and tears over the years. Another asset is your checking account, while another is your shiny motor vehicle. In other words, assets are the items that you didn’t acquire through chance – they were acquired with toil.
Asset Protection Plans
Diving into the subject immediately we now begin to focus on asset protection plans. Asset protection plans, put simply are essentially places where you can hide the value of your assets rather than leave them in plain sight. NOTE: when we say “hide” we really mean “protect.” But just for fun, and because “hide” is the term many people use, we will use these words interchangeably. Many people don’t consider the asset protection ideas discussed in this article. It is because they don’t plan to get sued. Nobody plans to get sued, but people in fact do and quite often lose what they’ve worked so hard to obtain.
NOTE: When we say “hide” we really mean “protect.” Because “hide” is the term many people use, and Mr. Google likes us to use the words people actually search for, we will use these words interchangeably.
There are more lawyers in the United States per capita than any other country. In fact, with 4.4% of the world’s population, the U.S. has 80% of the world’s lawyers. As you can imagine, lawyers of creditors enjoy being employed. So, what do they need to do? They need to find, and file lawsuits. That is why the U.S. also has 96% of the world’s lawsuits. More important to consider is they need to find money they can recoup from a lawsuit. That said, for those who don’t have any form of asset protection – you are leaving your assets in plain sight for the taking.
Can I Hide Assets?
There are ways to legally hide your assets from hungry creditors and protect them. A credible source reports that about 54% of Americans polled do not trust the legal system. So, for those of you who think your assets are safe because a lawsuit against you would be frivolous, it might be time to think again. It might be time to put a robust asset protection into place.
Options to Consider
We have many options to explore in regards to asset protection but keep in mind this article is primarily to inform you of your options. Of course, the company operating the site wants your service. The company knows you’re smart also – and they are not going to try to “slip one by you” with an article. You are the one to make choices and you make the final decisions. That’s respected. All that’s asked of you here is to inform yourself on how to take the proper precautions to keep your assets safe – and when you do decide to protect your assets, do so with a company with a long history of success. That what this company wants for you.
Establishing a Credible Business Entity
First to be discussed in hiding your assets before a lawsuit, or even hiding assets from a divorce, is the establishment of a company for protection. Business owners should create a business entity and should incorporate or form an LLC. Business entities such as corporations and LLCs offer legal protections and strong ways to hide your assets before a lawsuit even occurs. Consider Timothy who is the sole proprietor of a small business. When his business is sued because of his unforeseen human negligence, guess what happens? His business and personal assets are at high risk. Because Timothy didn’t incorporate his business he risks losing everything.
Now let’s consider Donna. Donna owns a small business and is a sole proprietor. She was wise and educated herself on the different options to protect her assets. Much to her surprise there were many options available to her. She discovered, for her small business she needs to incorporate immediately. She discovered the multitude of protections this not only offers her sales business, but she found out because the corporation is a separate legal “person” from her, that if a plaintiff targets her business her personal assets are not in jeopardy.
The Nevis LLC
Donna incorporated and she even did so in a small country in the Caribbean with some of the world’s most powerful lawsuit protection statutes. This is the country of Nevis. She formed a Nevis LLC. We will discuss this soon. She not only incorporated though, she also opened an offshore trust to maintain her personal assets. She opened an offshore trust because of its legality and the extra protections it offers if say, she smashes into a lawyer by accident as he’s getting his mail. From the two examples, be Donna. Don’t be Timothy.
As was mentioned, Donna opened an offshore company. The Nevis LLC is similar to a domestic LLC. What is wonderful is that it offers legal protection that is much better than a domestic LLC. It keeps your business assets safe – while at the same time it shields your personal assets in the event of a business-related lawsuit. Review this website where you can find very valuable information specific to Nevis LLC. Nevis is a politically stable island located in the Caribbean. Many business owners have trusted the Nevis LLC because it offers security for business assets.
Nevis LLC (Limited Liability Company) law, provides superior asset protection to other jurisdictions. No taxes are imposed in Nevis LLCs upon income. (But of course, you likely need to declare your income to your home country, if you live in a country like the United States, for instance.) A principal office and records for an offshore LLC in Nevis can be located anywhere in the world. You do not need to be a citizen of Nevis either. You have the option to incorporate in Nevis or form an LLC, both very prudent options.
There’s also the Nevis Complete Management Package to consider. This gives a phone number and address in Nevis, a bank and brokerage account. The website offers it. It is essentially a complete package that you can establish for this purpose. So, for those of you who want to take no risks and leave no stone unturned, this is a valuable option to consider and it’s managed elegantly. Again, we’re not trying to sell you here, we’re just simply providing you with an option, and we wouldn’t mention it if we didn’t believe in it. It works, and it’s a smart option.
Hide Your Assets in a Cook Islands Trust
There are other ways to hide your assets before a lawsuit. Keep in mind the new Golden Rule. Act early! Act before a lawsuit because last-minute transfers of assets not only look suspicious, they can be invalidated. An option to be discussed includes a Cook Islands Trust. This is a robust asset protection trust where you can hide your assets keeping them safe from prying creditors and money-thirsty lawyers. Opening a Cook Islands Trust is 100% legal. If you are not evading taxes, you have every right to open a Cook Islands Trust. Remember US citizens, you pay taxes and must pay taxes on domestic and international funds – and there’s no way out of that. You can protect your assets internationally and maintain tax compliance. But don’t leave your assets readily available for financial poachers.
Jenny is a 33-year-old physician’s assistant. She works in the emergency department at a busy Baltimore hospital. She’s single, and because she’s single without children this gives her lots of time to build her asset portfolio. Right now, though her assets essentially include: large amounts of money in her checking and savings accounts, equity in her almost-paid-off condo, and an already-paid-off BMW. She’s doing well. Right?
Well at first sight yes, she is. But ultimately, no! This is what we’re discussing. She needs to hide assets in the right places in the potential case she is sued. She works in a risky profession as well – which leaves her wide open to lawsuits. Without essentially a “blanket” covering most of her assets, money-hungry creditors can see what they want to take even before lawsuit is filed.
Time for a Fun Little Two-Line Pop Quiz
What should Jenny do right now to hide her assets before a lawsuit? Well these assets are personal so her best option would be to open a Cook Islands Trust. There are several reasons this is the smart direction for her to take. First, her assets are out of plain sight – deterring creditors from even initiating anything because if there’s no visible money. If it is protected beyond their reach, they have no interest. They can’t see it. Also, if a judgment is ruled against Jenny the court can ask Cook Islands Trust for your assets all they want – but Cook Islands Trust does not recognize foreign judgments.
So, Jenny’s assets are safe. Lastly, having one of these trusts allows Jenny to distance herself during a lawsuit from those assets. She is placing her assets into a Cook Islands Trust to hold onto while she is clearing up her legal issues. The court will see that she doesn’t have easy access to her assets so they typically won’t even be able to bother with them. They may try to obtain her assets if she does have easy access. As soon as Jenny’s legal troubles go away, she then retains full control of her assets held with Cook Islands Trust.
Consider Asset Protection, Without Delay
You need to consider hiding your assets before a lawsuit is ever filed. Taking that action allows you the peace of mind during a lawsuit that they won’t be touched. Yes, we said peace of mind during a lawsuit. That’s what you get by simply making the right choices now.
There are a several options for asset protection which include obtaining an offshore business entity with the Nevis LLC. You can even consider the complete management package which includes an address, phone number and fax number in Nevis along with a bank and/or stock brokerage account. Another option for safeguarding your money is opening a Cook Islands Trust, especially for personal assets. Review this website for further information and if nothing else, we hope you are more educated on this subject. Plus, we hope you now know that there are some easy and affordable steps you can take to protect both your business and your personal assets.
And, yes. Don’t wait like the guy below.
By Josef Hodgkins