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Asset protection resources for the real estate owner

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. .

That 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 conditions.


At assetprotection101.com, we offer the latest 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 educate themselves on how to protect their assets, we're sure you'll find our site helpful in making a better decision about your financial future. You may even choose to receive our free monthly newsletter to keep you on top of the latest developments in asset protection.

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