We have all heard of the threat “I will sue you” in one form or another, be it in a movie or real life. It is so common that it seems to be of little significance until it happens to you. A lawsuit can cost thousands of dollars and take months, if not years, to resolve. For this reason, we recommend that you prepare yourself beforehand just in case it ever happens to you. The best way to protect yourself and your possessions from a lawsuit are with asset protection.
This process begins when you get a professional legal examination in which your assets are reviewed in detail, and you are given recommendations about which tools will best fit your specific needs. The legal professional will then help you set up an asset protection plan or a proactive standard approach that is used to protect your assets from creditors, divorce, lawsuits; you get the idea.
As mentioned above, there are several tools available for asset protection based on your needs. Some common examples are trusts, limited liability companies (LLCs), limited family partnerships, foreign corporations, and foreign LLCs. Each of these tools has a unique purpose and level of protection. The most robust and most effective tools are the entities or structures overseas, such as a foreign trust. The reason being many foreign countries don’t recognize foreign court orders and therefore keep your assets safe and secure.
Another benefit of having an asset protection strategy is that it changes the way financial predators see you. Instead of seeing you as a quick and easy meal, they will see you like a fortified and armored soldier ready to defend himself regardless of the attacker. This alone deters many predators, but there are other benefits.
Privacy is another massive piece of asset protection. Using the proper legal tools, you can hide certain assets from the public eye. This not only protects them but makes them invisible to the potential enemy lawyer and therefore deters other legal professionals from helping out the enemy. It also decreases your visible net worth, which helps prevent predators such as identity thieves and hackers.