Asset Protection Company
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The impetus of an asset protection company comes from the need for people to protect their assets from lawsuits, government seizure, and internet hackers. In general, protection is sought after by the wealthy. Wealthy is self-defined. It really is a matter of location, culture, and environment. For the sake of this article, wealthy will simply be defined as having a net worth of $100,000 or more. For many who are worth millions and even billions, this is peanuts. But for those who may only have savings of $1,000, it's plenty. No matter how a person defines it, the idea of protection is a concern for anyone with any amount of assets. That's where an asset protection company comes in.
Some ways in which an asset protection company might avail themselves include during times of divorce, failed business venture, and uninsured motorists. At least 50% of marriages don't last until death do they part. Divorce often brings lots of financial issues. Unless the couple keeps their financial lives totally separate, most times disagreement will erupt. With a plan of protection in place, each party to a divorce are likely to feel less stress over finances. Not unlike a marriage, is a business with other people. The idea is for the partners to trust one another. But, what frequently happens is that businesses go sour. Each person wants out and wants to get the most money when they leave. An asset protection company can set up each person's personal finances so that if the company fails, the individuals finances are not affected. With uninsured motorists, the story is somewhat different. No one plans to be hit by an uninsured motorist. Yet, a wise financial steward will build a protective shield for such occasions. "And all the tithe of the land, whether of the seed of the land, or of the fruit of the tree, is the LORD'S: it is holy unto the LORD." (Leviticus 27:30)
An asset protection company could be hired for many different reasons. Keeping one's personal property from the clutches of a lawsuit is usually within their purview. These entities use two key components to shield their client's belongings; privacy and safe haven. Looking at the issue of privacy, one must realize that computers have made finding out information easier for just about anything or anybody. One must realize that Americans do not have a constitutional right to privacy. Privacy only became an issue in this country when telephone directories began to appear, the banking system became nationalized, and the federal income tax was instituted. The Privacy Act, originally an attempt to stop government from collecting information about citizens, requires prior written consent for someone to have access to an individuals personal information. Unfortunately, the government has allowed private companies to do what they themselves have been prohibited from by law. If one has a voter registration card, it can be connected to utility bills, that can be connected to property tax bills that can be connected to a mortgage that can be connected to credit cards, and so on and so on. And these companies twists our arms to get the information in order to use their convenient services. If we refuse to comply with these requests we lose out on using credit, charge accounts, and even home utilities. On top of that, the government still has access to the personal information of individuals via the private companies.
The Patriot Act makes keeping financial affairs under wraps extremely difficult; keeping an asset protection company in business. Once a person earns money, they expect to be free to do what they want with it; including keep it. Even if a person uses a pseudonym, the Patriot Act allows the government to search telephone, e-mail communications, medical, financial and other records. Additionally, the Freedom of Information Act allows information of different types to be accessed and available to certain requesters. On top of that the FDIC got into the game when they required all banks to file currency transaction reports (which are reported to the federal government) for any person who deposits $10,000 cash in the bank. This is considered a "suspicious activity." Even more remarkable is the fact that a bank deposit of $9,000 in cash on one day and depositing $2,000 cash two days later is not only suspicious, but akin to "money laundering" in the eyes of the government. Deemed a felony to the government, a person could have their assets seized and be charged with a crime. So is the transport of money of this magnitude across any U.S. border. At that time, the only recourse would be to hire an attorney for the possible return of the funds.
The main purpose of working with a company of this type is to safeguard assets. And frankly, people want to keep more of what they earn. No one wants to lose what they have to a legal case, to the government, or because of criminal seizure of their possessions. The good news is an asset protection company could help a person avoid these types of situations altogether. Instead of keeping money in a liquid state, they'll find ways to invest your funds in active and passive activities that allow relatively easy access while providing maximum protection of a person's finances. Implicitly, an asset protection company creates estate plans. Different plans exist for different circumstances. No "catch-all" program will work for everyone. Some plans are developed specifically for liability protection, some for better tax advantages, and some for privacy. So it is critical that one must look at various possibilities when pondering their financial future and plan for possibilities, probabilities, and eventualities.
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