Asset Protection Basics
QUESTION: WHAT IS ASSET PROTECTION PLANNING?
ANSWER: Asset protection planning is the adoption of advance planning techniques which place one’s assets beyond the reach of future potential creditors. In our practice, it does not involve hiding assets, nor is it based upon secret agreements or fraudulent transfers. It is based upon proven sophisticated combinations of business and estate planning techniques.
QUESTION: WHAT IS AN OFFSHORE TRUST?
ANSWER: By definition, an “offshore trust” is simply any trust formed under the laws of a jurisdiction outside of the United States. The property settled upon the offshore trust is held “in trust” by an offshore trustee. The offshore trust is the core of effective asset protection planning.
QUESTION: WHO SHOULD CONSIDER ASSET PROTECTION?
ANSWER: There is no formula for determining whether an individual or business should engage in asset protection. As a preventative measure, asset protection should be considered by all high-net worth individuals. Certain factors increase the need for asset protection planning, such as connections with high-risk professions (doctors, lawyers, real estate developers, etc.), owning investment real estate, operating a business, having children, or guaranteeing loans. If there is any chance that you or your business may be sued in the future, consider asset protection planning.