Asset protection is the art of keeping what is yours. Our strategies insure against generally uninsurable events. For example: divorce, bankruptcy, bad luck and even bad decisions. These needn't result in the worst possible outcome if you plan ahead.
Asset Protection Strategies
If you consider avoiding losses to be a gain, as we do, then these strategies represent the best returns on investment available. As with fire insurance, they operate silently in the background. Hopefully you never have to use it, but you are prepared. You do have fire insurance right?
Each situation calls for its own strategy. Your assets’ risk profile and your potential creditors will determine which you choose. Browse our offerings or contact us today. Here are our most popular products:
Our trust services are designed to simultaenously protect your assets from creditors while allowing you to live off them. Everyone, regardless of state or country of residence, may form a self-settled trust. We will show you how to establish a trust for your own benefit.
We can also form a private trust company so you personally oversee the assets.
Domestic trusts are popular alternatives to their off-shore equivalents. Consider it to be hiding money in plain sight – without the additional scrutiny of forming an offshore trust. This distinction has led Wyoming to become one of the nation’s leading when it comes to trust laws.
We often advise single-member and family businesses to form a Solo 401(k) LLC for taxes and risk. Your company establishes a 401(k) which it pays into. The payments are tax-deductible on the corporate side. You are not taxed on the income until it is distributed from the fund years form now. This allows tax-free compounding. In the meantime, the fund forms an LLC which it uses for investments as it wishes.
This protects from risk in two ways. The first is via the traditional aspects of an LLC. Namely, corporate creditors cannot pierce the corporate veil and seize personal assets. The other side of the equation stymies personal creditors as the 401(k)/ IRA is an exempt asset given it’s a qualified retirement plan. This protects its holdings from personal liabilities.
Simple yet effective. Begin by insuring your assets from common risks. Learn about the various insurances available and when you would want to use them. After properly insuring yourself and your company browse our other strategies to further protect you from adverse outcomes.
Wyoming companies are popular due to their lack of taxes. Equally important, though, are the asset protection benefits they provide. Proper business planning is similar to insurance. You may go a long time without needing it, but will be glad you did when an incident occurs.
The ultimate goal is to separate assets and liabilities. Then, if a credit event occurs, the corporate veil protects valuable assets from being seized. This is done through the creation of multiple entities – with assets separated according their risk profile and value.
A benefit unique to Wyoming corporations is charging order protection. In other states, if a creditor secures a judgement against you, they can force you to disperse assets from your LLC and seize them when they do. Wyoming does not allow this. You are allowed to keep the assets in the company for as long as you wish, or distribute them to third parties. This turns the disagreement into a waiting game with you holding all the cards.
Our goal is to provide a holistic strategy to secure your financial future. We are happy to begin by forming your LLC, but the day may come where you need additional services. We stand ready for that day.
Asset protection planning is the process an individual or corporation takes in organizing their financial assets which makes it difficult for a creditor to seize or place a lean on them in the event of default on a business or personal loan. The process involves changing the form of ownership from unprotected to a form of protected ownership. Unprotected ownerships include titles or deeds in an individual's name, while protected forms utilize types of ownerships including corporations, limited liability companies, and limited partnerships, some specific types of trusts, and offshore entities, which hold legal title to said assets.
While asset protection planning is legal, one must do so within the confines of the law. Certain actions that have the intention of defrauding creditors is against the law and, if caught, prosecuted, and convicted, it may mean going to prison. In addition, state laws vary and asset protection is not effective in debts to the federal and state tax liens, purchase money retailers, alimony and child support, and mechanic's liens on real property.
Before engaging in any form of asset protection, the individual, partnership, or corporation should seek professional advice from an attorney. Properly set up, asset protection will discourage most debt collectors from pursuing people. The debt collectors would rather exert their efforts on unprotected debtors, giving them a more realistic chance of collecting. In fact, deterring debt collectors is the main tenet of asset protection. Judgment debt collectors understand the resources, including time and money that it takes to collect on accounts. When faced with a business owner who has a well-implemented asset protection plan, the collector may also be willing to settle the debt for pennies on the dollar.
One should exercise caution when deciding on the professional help needed to establish an asset protection plan. Like any other field, many fraudulent people do not know what they are doing or are only interested in obtaining excessive fees from business owners. The latter is especially true when dealing with people who operate in other countries. In addition to obtaining excessive fees, these criminals may use trickery in their documents that will literally strip the individual of the assets he or she sought protection for in the first place. By consulting with the wrong people, an individual could potentially lose large sums of money and/or assets. In addition, the individual may not have any protection and may possibly face criminal charges.
In conclusion, the more that an individual has to lose, the more the need for a bulletproof asset protection plan. Quality professional assistance in establishing such plan is the first step in doing it right so that the assets are protected and no criminal actions have been committed. In addition, it is important to understand that in today's world, it is very easy for an individual to be sued for things that occur within one's company despite established policies prohibiting said actions. These actions may include any type of discrimination, errors made in various departments, or even poor customer service. The business owner should be entitled to keep his or her assets despite the wrong actions or mistakes of employees or any others within the company.
Irrevocable Medicaid Trusts
Medicaid costs have quietly become the new inheritance tax. With a threshold of $11,000,000 for couples, few families have to worry about inheritance taxes. However, with the rising cost of long term care, and the large number of individuals needing it, many will not be able to pass on their wealth.
Our irrevocable trusts will allow you to qualify for Medicaid, live off your asset's income, maintain control and add or change beneficiaries at any time. The only thing required is five years of advanced planning. We generally recommend this planning is during during a larger estate planning consultation.
Offshore Asset Protection
Offshore strategies have earned a bad reputation. This is in part due to their frequent use for evading taxes. This has led their use to be scrutinized by the IRS. That is, declaring an offshore company or trust places you at increased risk of audit. This is why we often advocate domestic trusts, but this doesn't mean there isn't a place for an offshore trust in your planning. We can show you how to create one and use it to maximum benefit, without eliciting the ire of authorities.