Business Structure Consulting

Asset Protection Has A Bad Name

Because so many have abused the concept, and turned themselves into tax dodgers in the process.

Simply put, don't keep all your eggs in the same basket. Our solution is to create one or more corporations or limited liability companies (LLC) into which you can legally transfer certain assets. Then if someone sues you personally and wins, the assets in the corporation or LLC cannot be taken. That is, if the structure is set up and managed correctly. Let us help you protect the things you've worked so hard for.

The current litigation explosion in our society is forcing professionals and small business owners as well as the common homeowner to focus on ways to protect their savings, investments and other accumulated assets that have become attractive targets for hungry and unscrupulous attorneys.

The US legal system stacks the deck against the defendant and is in favor of the plaintiff. This is especially true if the plaintiff has deep pockets to pursue you. Frequently it is the party with the most financial holding power that will prevail. Justice does not prevail in some cases.

The average person will be sued five times in their lifetime and faces the very real prospect of being on the receiving end of a ruinous judgment. Failure to plan for that contingency can result in the instant loss of a lifetime's accumulated wealth. Once a suit has been filed or one is anticipated, the law frowns upon moving assets. Although assets may be moved under certain conditions, it is always best to plan and execute a strategy for protection of your assets before a threat arises.

How do they find your assets?

How does a lawyer find something you have of value? Very easily. They hire one of many firms that specialize in locating assets for attorneys. They can locate bank accounts, real estate, brokerage accounts, autos and businesses in your name. In fact, many times a contingency fee attorney will do an asset search on you before he even bothers to sue you. He wants to make sure you have something of value before he spends his time and money. There is little about your personal and financial wellbeing that cannot be found. However, if the assets are not in your name and are instead listed in the name of a corporation, trust or partnership, finding them becomes much more difficult (if not impossible) and expensive for the plaintiff's lawyer. In addition, even if an investigator finds assets in an entity owned by you, if the entity and structure are managed correctly, and set up well in advance, the attorney on the case will hesitate to attempt to pursue those assets.

How to minimize your assets

How do you minimize the chances of losing assets? By becoming a smaller target. How do you become a smaller target? By giving the appearance that your estate is small. You do as John D. Rockefeller said, "Own nothing and control everything." That is the key. You of course, do not want to give up control, but you can relinquish personal ownership in such a way that a plaintiff will give up and look for greener pastures. Be careful not to do the "poor man's asset protection." Transferring assets to your brother, sister, mother, or friend is not a good idea. It is extremely transparent to a plaintiff attorney and it may result in serious tax problems.

Are these techniques legal?

The way we structure it – Absolutely! Asset protection has been practiced by the rich for decades. They use these very tools and strategies that we are discussing. The methods we use are legal, effective and can give you the peace of mind you have earned. So, you want a complex offshore structure to keep your assets safe? We'll send you elsewhere. If you just need a simple structure of entities to keep the things you've worked for safe from litigation, we're here to help.