FREQUENTLY ASKED QUESTIONS
What is Estate Planning?
Estate Planning is an important part of your life. Update your will(s) to conform to the Trust. Use a Trust as protection from lawsuits and avoidance of judgments and garnishments.
What are Irrevocable Trusts?
An Irrevocable Trust can be very beneficial in the protection of your assets. They are not subject to creditors rights and cannot be touched if you are sued. These are usually statutorily enacted and are strictly construed. All courts are required to honor them. They offer a higher degree of protection over your assets. They can include property, life insurance or other assets.
What are Land Trusts?
Land Trusts can provide asset protection benefits by providing you with privacy of ownership. If no assets can be located, this drastically reduces the odds that a lawsuit will be filed. Each piece of real estate is placed into a separate land trust. So that when a lawsuit is associated with one piece of real estate, each piece of property is titled to a different trust.
This makes it more difficult for an attorney to discern whether or not you are associated with more than one property. In addition, we will often form an LLC, that you own that records second mortgages against all of your properties to further reduce the appearance of your net worth to an aggressive litigant. Essentially lawsuits are directed at people with assets not liabilities.
What are Asset Protection Trusts?
Asset Protection Trusts allows for the holding of assets, including cash, securities, life insurance and other types of net worth in a protective Trust that privatizes your assets. There are several types to choose from both domestic and foreign.
What is a Limited Liability Company?
These are statutorily created legal entities that protect against business liability and claims from creditors. All members have limited liability protection and all members can participate in the operation of the management and control of the business.
The LLC can be taxed either as a partnership or as a corporation. These are very strong protective devices. These are mostly used in business operations and real estate holdings. They offer favorable tax treatment as well. We often tie these together into Trusts to avoid any threat of personal judgments and collection activity.
What is a Corporation?
Corporations like an LLC provides limited personal libility and creates another legal person who holds ownership in the business or asset.
The corporation like the LLC has it's own federal EIN number which is distinct from the individuals social security number. The corporation does not need to be taxed separately as a sub S election offers favorable tax treatment similar to the LLC.
What is a Family Partnership?
Family Partnerships allow the transfer of appreciated assets to go to family members who are made parties to the organization. The can receive compensation in accordance to their ownership interest. These offer great flexibility and a strong degree of asset protection.
What is a Management Agreement?
These are contractual agreements that are created for a specific need such as the operation of a business or a leasing arrangement. By relinquishing control a current business asset becomes unavailable for legal recourse.
Offshore tax havens are only for the rich.
Asset Protection Service is illegal.
there are many myths about Asset Protection Service. You may use any
legal method to protect your assets from claims, lawsuits and
judgements. In the USA today anyone with a $250,000 in net worth is in
the top two percent. You need to protect your hard work.
Lawsuits cannot be prevented.
Assets cannot be protected.
and family's can establish legal entities to protect their assets. The
individual will have no equity ownership in the entities and be
essentially judgment proof. Trusts are private in nature and can have
their own federal EIN Number.
Lawsuits are expensive to defend, so it is best to avoid them.
Asset Protection Service can avoid taxes.
Protection Service can protect your assets, it cannot avoid taxes. BE
CAREFUL of any such false claims. Offshore protection can be a valid
tool, but U.S. citizens are required to include all foreign income on
their tax returns. Simply moving money offshore is not a solution.
Secondly, the majority of foreign banks are NOT INSURED. There is
substantial risk. Understand this. Also all foreign accounts must be
reported to the IRS.
I will lose control of my money or real estate with Asset Protection Service.
or your Trustee will have complete control over the assets. Do not
transfer any funds to a third party. You must retain ownership and
control over all money and real estate. DO NOT FALL FOR ANY CLAIMS THAT
REQUIRE A CHANGE IN OWNERSHIP to a third party who charges an annual
fee for their services.
Asset Protection Service is expensive.
Protection Service rates are very reasonable. There are no recurring
fees and no annual out of pocket costs if set up correctly. Look at it
as asset insurance.
I can protect myself by transferring all my assets to my spouse or children.
risky, as this will not protect from lawsuits. In fact it opens up
many other potential problems and claims including divorce and
Asset Protection Service can be implemented after a judgment or collections are made.
best protection is BEFORE any threat or lawsuit is made. Sometimes
after the fact planning can be useful, but it is determined on a case
by case basis.
*REMEMBER: An ounce of prevention is better than a pound of cure.*