Middle-Class Americans need for Asset Protection
Who doesn’t want to live the lifestyle of the rich and famous? While it is evident that high- risk, high net worth individuals stand out as prime candidates for safeguarding themselves against legal misuse prevalent within the U.S. tort system, the practical reality is that nearly anyone with assets can find value in asset protection planning. This holds especially true for middle-class Americans who could see a modest lawsuit deplete their entire life’s savings. That’s why we tailor asset protection plans to suit each individual’s financial situation and desired level of asset security.
Before delving into the advantages of legitimate asset protection, it is essential to grasp that the primary goal of the legal mechanisms employed in asset protection planning is not to conceal personal or business assets or evade taxes owed to the U.S. Government. Instead, the aim is to shield your assets from potential attacks by unreliable creditors or litigants, ensuring that you and your estate beneficiaries can ultimately enjoy the fruits of your labor.
So, how does this safeguarding of vulnerable assets occur?
As previously mentioned, our attorneys and affiliates utilize an Asset Management Limited Partnership (AMLP) in combination with a meticulously structured Bridge Trust ® to establish a legal barrier or fortress around your susceptible assets, offering enhanced protection from predatory creditors. This is achieved by legally separating you from your assets through the AMLP and potentially “internationalizing” those assets within the Bridge Trust ® if faced with an unforeseen lawsuit or other legal threats.
Benefits of Asset Protection Planning
What are the key advantages of engaging in asset protection planning?
– By keeping your assets within a Trust located in a Trust-friendly offshore jurisdiction, it greatly complicates or even renders nearly impossible the collection of judgments by potential creditors against your personal wealth.
– The strategy of legally disconnecting you from the ownership title of your assets—referred to by lawyers as “removing the legal remedy”—removes the incentive for lawsuits, while ensuring that you maintain beneficial ownership and distribution rights over these assets.
– Placing your assets beyond the jurisdiction of the U.S. court system bolsters your bargaining power when resolving legitimate disputes.
– Even in the case of “internationalized” assets, you still benefit from the Trust assets according to established directives that address your needs and those of other beneficiaries, especially you as the Grantor.
– The Trust provisions also allow for the allocation of Trust resources to support and benefit all beneficiaries, primarily yourself.
– Once the event triggering the “internationalization” of your assets ceases, you have the flexibility to repatriate these assets to the U.S. or retain them in the safeguarded offshore location based on your preferences.
Critical Considerations
Typically, however, the mere threat of triggering a Bridge Trust is sufficient to ward off most predator attorneys and encourage legitimate creditors to settle the matter on more attractive terms than might otherwise be the case.
Regardless of the net worth, there are several critical points asset protection candidates and their attorneys must consider.
Funding: The most critical point is that funding may occur only when there are no creditor claims pending, threatened or expected. Otherwise you invite a charge of “fraudulent conveyance,” which could unravel the plan and lead to possible prosecution.
Solvency: You must remain solvent after funding the plan, with the ability to pay all reasonably anticipated debt from resources inside and outside the Trust.
Advisor: Careful selection of an experienced asset protection attorney is imperative. Since as- set protection planning often is linked closely with traditional retirement tools, considerable knowledge of recent asset protection law and estate planning expertise is most desirable. This is particularly important now when there is so much misunderstanding by inexperienced lawyers and financial advisors about what asset protection can and can’t do. Additionally, there are a great many Tax-Schemes that purport to be asset protection, which should be avoided at all costs. Asset protection and tax savings should never be put together.
We can help you take control of your own asset protection planning.
Call to schedule a consultation with an asset protection lawyer at (888) 773- 9399
By: Brian T. Bradley, Esq.
