How To Protect Your Assets
There are many legal ways to protect personal assets. Anyone can use some techniques that can be useful in the case of lawsuits. Assets can be moved or transferred into trusts and that should put them out of reach.
Starting with the 1970's, asset protection became more and more noticeable because of some lawsuits. Offshore asset protection trusts started to become popular around that time and it seamed the best way to protect a persons assets. In this period, several jurisdictions developed advantageous laws for those that needed asset protection. In the 1990's most millionaires from the United State had some sort of protection, usually an offshore trust. If you get sued, any personal asset can be claimed by the person that filed the lawsuit.
This can be a really big problem for wealthy men, but also for citizens with an average income. If you have an asset protection plan, even if you lose a lawsuit, you can't lose the assets that are protected. With an asset protection trust, you can transfer all of your assets to the trust and your ownership title will be removed. You can still benefit from them, but they cannot be taken away from you. Trusts are very safe and privacy is the key word. Irrevocable trusts can be made by anyone. After the creation of such a trust, no creditor can claim assets that are protected by it.
A trustee must ensure the management of the trust and they will be used to your benefit. The most important rule in asset protection planning is to plan ahead. Transferring assets with fraudulent intent is illegal and you can lose lawsuits if the claimant proves that you made the trust with the intention of hiding assets from creditors. If you start the trust before any lawsuit or attack, you can enjoy the benefits of asset protection without having to worry about creditors or breaking the law.
There are many ways to protect assets, but the techniques used can differ from case to case. A good asset protection plan can only be made by a specialist or a company that has experience. There are many legal procedures that need to be followed. Asset protection plans should be conceived in a way that would make it to expensive for creditors to reach the assets. In this case, they would probably give up the process and try to settle outside of the court.
Because trusts offer anonymity, claimants can reach assets that are no longer in your ownership. Any asset can be protected, but all techniques must be used before any attack on that particular asset. The service comes at a price, but it can offer full protection against any claimant. Without a proper asset protection plan, your house, car and any other property or liquid cash can be taken away in any lawsuit.
Creditors must used expensive techniques in order to break the trust and the procedures are so costly that it's simply not worth it. A good asset protection plan should be effective, it should be made as soon as possible and it should offer different layers of protection on all of your assets.
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