Legal Issues: Asset Protection

Protecting Your Assets Is Not Only Big Business – It Is Your Business

Asset protection (and before you start, no, we’re not talking about protecting your “package” in a baseball game . . . more about protecting your package from the tax man or ex-wife and other future creditors) is a very important consideration these days, particularly for “professional types” like international investors and private depositors. It is, however, just as important for me and you, the man in the street, assuming of course that he does have some assets to protect. Some asset protection strategies are pretty complex, others are quite simple . . . generally speaking the more complex your asset protection planning the more successful and effective it can be, but that doesn’t mean that there aren’t also a few simple solutions to your asset protection problems.

Asset protection is something which many of us don’t even think about until it’s too late . . . that’s generally true of people with little assets anyway, (or should that be fewer assets).
There are many reasons you require asset protection: someone can slip and fall on your property, you could be involved in a driving while intoxicated accident or you could own a business that creates a risk exposure.

Asset Protection For Investors

Successful investors don’t go to all that trouble (buy, buy, buy . . . no, sell, sell) to hand over the majority of their cash to the tax man, so one very popular method of asset protection (not tax evasion – that’s illegal, asset protection is kind of legalized tax evasion) is by using Offshore banking. Investing pots of cash in Offshore bank accounts gives instant asset protection and can make the whole procedure very tax effective. Another popular method of asset protection for those who “have” is by using a limited liability company . . . you’ll also need a very good lawyer who is well versed in the advantages and techniques needed for asset protection but who preferably won’t cost you more of your assets than you are trying to protect.

Asset Protection For All

Asset protection is becoming increasingly important for all, especially as we now live with this “compensation culture” mentality. Everybody is out to get every last nickel out of everybody else they can . . . lawsuits are filed in their thousands every single day by customers, creditors, business partners, spouses, government agencies, competitors . . . there’s no wonder that we now regard asset protection to be an important part of our wealth management for the future.

Learning Asset Protection

They say that if you want to be a millionaire, you should mix with millionaires and learn from them, and the same goes for asset protection. Look at how the super rich live and how they protect their assets, and then imploy their techniques in your own life. Super rich people benefit from many assets, but when you get right down to the nitty gritty they actually own very few of them . . . they are in a position to enjoy the benefits of the fruits of their labor without risking losing those assets . . . they are very good at protecting their assets. Of course, they will own a few “assets”, and once someone pursuing them through the courts has found these assets they will naturally assume that it’s the end of the road and stop searching for more, not realizing that the real assets of these people are hidden in corporations, foundations, property trusts, fictitious names, escrow accounts . . . there is no limit to their imagination when it comes to asset protection (or to the imagination of those who get paid a handsome sum to protect them).

Right, so let me see, I’ll sign over the dog to my youngest son just in case he causes any real damage chasing the neighbors cat . . . I’ll put the house in trust for any great great grandchildren which might eventually succeed me . . . . I’ll empty my bank account and use it to stuff the mattress (that won’t even make a small lump) and as for the car, I’ll sell that and take the bus. Surely I can’t get into any trouble sitting on a bus. I think that’s my assets protected, how about yours?

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