As a real estate owner or a business owner there are
so many benefits to asset protection.
How asset protection works
There are numerous techniques to protect different types of assets. Some
of the techniques could be appropriate for everyone to utilize in
everyday life and others may be more appropriate for those with
substantial assets that may require more sophistication (and cost) to
accomplish the necessary protection. Asset protection techniques are
also individual to the asset being protected, as the location and types
of assets may affect the technique used. .
being said, almost all asset protection techniques have a common thread
in their use; they make it more difficult for a creditor or anyone after
them to either find or take those assets. By utilizing a properly
implemented asset protection plan an individual can legitimately put a
rather significant portion of his/her assets out of the reach of
creditors, judgment creditors and the like. The goal is to accomplish
this while retaining a semblance of control over these assets. A
properly implemented asset protection strategy will reduce the available
“meat on the bone” that a plaintiff's attorney may be chasing. It should
be obvious that if the plaintiff's attorney discovers that little or no
assets can be taken, the motivation may fade if the case has been taken
on a contingency basis. If the plan is properly structured, the end
result would be the destruction of an economic incentive to litigate on
the part of the plaintiff or the plaintiff’s attorney.
Many times an asset protection trust is utilized to insulate assets from
such an attack. Normally established in an offshore jurisdiction, an
asset protection trust will often control assets held in the United
States to be protected under indirect control of the person establishing
the trust, or the settlor. The attempt of these trusts is to create an
entity that is irrevocable for a set term of years and the settlor is
not a current beneficiary. With a accurately drafted and timely settled
trust, creditors of the settlor cannot attach the assets of the trust.
These trust is structured so that eventually the undistributed assets of
the trust are returned to the settler at the end of the trust agreement,
allowing the the settlor to regain control of the protected assets.
These trusts work will in discouraging litigation, but can be useful in:
Keeping the ownership of assets confidential.
Creating an alternative to a pre-nuptial agreements.
Creating an international entity to hedge against deteriorating economic
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news developments, strategies,
resources and links
relating to asset protection. Whether you a real
estate developer, real estate
owner or any business owner looking to better
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