Asset Protection Strategies
Asset protection strategies are necessary for protection from potential lawsuits, creditors, or any other organizations that seek to lay claim on portions of people's savings. A plan set in place for the protection of one's properties can be like a protective barrier barring the way between a frenzied creditor and a family's nest egg or a person's life savings. There are several courses of action for building that barrier. The best way to protect earnings and assets is by setting up a trust, which is also the most common method due to ease and low cost. Most plans are able to be customized to best fit the needs of an individual, company or organization.
Many people feel the need to take precautionary measures when it comes to guarding assets and investments. Asset protection planning has been sought after throughout the years due to effectiveness and to the fact that no laws are broken. Everyone has the right to take steps to ensure that their money is protected from such events as over taxation, bankruptcy or tricky financial situations that might arise as the result of a divorce. Steps towards financial protection are imperative before any claims or suits are filed against someone's assets. People need to take action as soon as possible to make certain that the majority of personal properties are protected.
Various strategies for the protection of assets are available, and not all strategies are the same as people are able to customize plans according to needs. The best way of determining the most effective method is by basing the method on what area of finances needs the most safeguard and the possible risk factor involved. One of the most common forms for the protection include plans geared toward retirement, portions of property legally given over as a gift, turning a business into an LLC and so on. Domestic asset protection strategies are implemented when a person seeks to protect the assets they have within the country of residence. An expensive form of investment protection is found in an offshore trust. Oftentimes, when plausible, people will choose to set aside a large portion of investments in a foreign country where the assets will be protected by creditors do to the different jurisdiction and laws. While this method can prove to be beneficial, one is required to be familiar with the legalities involved and maintaining an offshore investment can become costly.
Asset protection strategies function much like a shield against the attack of unfriendly foes. By setting up and properly maintaining protection, people are able to shield investments and earnings from those who might try take from them, such as creditors and various officials of the government. If one has failed to set up a proper defense system at the time of an attack, they are likely to lose a substantial portion of assets, whereas those who have taken preliminary precautions have a greater advantage against the assault of creditors.
There are simple ways of making certain that a family's nest egg is protected, the most widely used strategies being that of a trust, either domestic or offshore. Placing money in a trust is an excellent course of action as trusts are easy to maintain and have the ability to grow over time. Those who have a lot of assets or have a high income would be wise to consider hiring a financial accountant as a method of asset protection planning. The selection of a reputable accountant or attorney can be a wise decision as clients can deal directly with a real person they trust to intelligently manage investments and provide an added level of security.
Asset protection planning is made up of techniques that enable people to protect what they have. Creditors are not prevented, planning simply makes the job one of dead ends and frustrations, in the hopes of deterring the efforts made by any current or future creditors. There are cases and situations when hiring an attorney is necessary. When dealing with large sums in either settlements or claims, abiding by laws is important yet can be difficult of one is not familiar with the process. Precautions should be taken any time valuable assets are at stake and a working knowledge of the boundaries of such processes can occasionally be necessary.
While plans can be formulated and put into action that have the purpose of discouraging creditors from filing claims or other actions, those who do so need to keep in mind that there is a line that should not be crossed, and if done so, could violate the law. The act of discrediting of discrediting a creditor is not validated whatever the reason, and is an action that if taken, is considered a criminal offense. One of the main purposes of asset protection planning is to avoid possible lawsuits that might be enacted. Any steps towards asset protection strategies after a lawsuit has been filed are against the law and can be considered a criminal offense. Situations might arise where one feels like they have not been treated fairly, however, creditors have a job to do and laws are put into place with the intent of being abided by. As the Scriptures say, "Let every soul be subject unto the higher powers. For there is no power but of God: the powers that be are ordained of God" (Romans 13:1). Everyone has the right to guard properties and investments which can easily be achieved through ethical means.
Asset Protection ConsultantAn accomplished asset protection consultant can help corporations, smaller enterprises, and individuals develop a loss prevention plan to secure capital assets and prevent seizure through litigation. Large and small entrepreneurs run the risk of losing hard earned capital assets through workplace thefts, embezzlement, or lawsuits. In today's licentious, libel-hungry culture, there are those who major in preying on unsuspecting business owners and individuals who have accumulated wealth; and the enemy can exist from within or without. Companies lose millions of dollars each year to employee theft or embezzlement, while individuals can be bilked out of thousands through frivolous lawsuits and get-rich-quick scams. Asset protection services can assess potential avenues and opportunities which may leave a company or an individual at risk for theft, mismanagement, embezzlement or litigation. Once assessed, professional consultants can help potential targets devise strategic plans to counteract adverse consequences.
Due to the accessibility of private and public information through the Internet, almost anyone can discover specific details about the amount and types of capital assets owned by others. Divorcees, collection agencies and attorneys, federal and state governments, thieves and extortionists can all gain access to private financial information by doing an asset search on the Internet. All that is needed is a name, a social security number, and electronic payment to cover online fees. Once assets can be tied to a person's social security number, attorneys seeking to collect delinquent accounts, disgruntled ex-spouses seeking divorce settlements, plaintiffs seeking restitution, and the Internal Revenue Service seeking to levy judgments to collect past due taxes can all file claims against unsuspecting individuals. But an accomplished asset protection consultant can help prevent collection agencies and others from taking unfair advantage of business owners and individuals.
One simple way to protect assets is to keep private information private. Identity theft has become a national epidemic, as thieves make a living out of fraudulently obtaining personal financial information about unsuspecting consumers. Law enforcement agencies advise consumers, especially older adults, not to give out social security numbers or banking information over the telephone. Individuals should be careful to shred paperwork which includes financial data that thieves can use to gain access to funds. Asset protection services and law enforcement also advise against divulging personal and financial information to individuals who present themselves as lawyers or collection agencies.
Another fail-safe method of protecting assets is to keep the right perspective about worldly possessions versus the true spiritual riches of the Kingdom of God. "Lay not up for yourselves treasures upon the earth, where moth and rust doth corrupt, and where thieves break through and steal: But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal: For where your treasure is, there will your heart be also" (Matthew 6:19-21). In spite of expert advice from an asset protection consultant, thieves may succeed in stealing assets and identities, but no one can rob an individual of a truly born again experience with Jesus Christ.
A professional consultant is a keen strategist when it comes to protecting an individual's wealth. One strategy is to create a legal separation between the client and capital assets owned. In order to detach an owner's social security number from real property, investments, stocks, bonds, or liquid assets, consultants must attach property to a legal entity which cannot be traced back to the client. Debtors routinely try to place ownership of assets under relative's names, but the IRS and creditors can easily detect an effort to illegally convey property to avoid prosecution or seizure. Professional consultants may recommend concealing assets under a corporate structure which will alleviate clients from personal liability. Individuals at risk of litigation or seizure of assets due to legal judgments may choose to incorporate businesses and place assets under a legal corporate name, or donate capital assets to an S-corporation. Personal property is protected against litigation; and plaintiffs are prohibited from suing the client as an individual. Asset protection services may also advise investing capital in offshore ventures under the jurisdiction of foreign governments and out of reach of domestic litigation.
Reputable asset protection services may recommend short- and long-term solutions to safeguard funds. Retirees on a fixed income can avoid becoming extortionists' targets by stashing away tax-deferred funds in an Individual Retirement Account (IRA), untouchable until the age of 59 1/2. The federal government is prohibited from taxing IRA accounts until individuals withdraw monies at maturity. Asset protection consultants may also advise clients to establish trusts and foundations which operate under Employer Identification Numbers (EINs), rather than a client's social security number. Strategies exist for almost every situation in which clients find themselves in a fight to build an impenetrable fortress around capital assets.
Corporations and individuals seeking capital asset protection may browse the Internet for links to reputable consultant firms. A professional asset protection consultant should have a lengthy track record of successfully providing protection to a wide variety of clients. Ask to see case histories, references, and explore company websites to review policies, pricing, and personnel. The last thing a client needs is to discover all too late that the asset protection consultant is actually using financial privacy tactics and tools to help themselves to capital assets. Wary clients can do background checks on firms and check with the Better Business Bureau and Securities Exchange Commission to review negative and positive reports, check credibility, and ensure that all federal and state requirements are being met. Corporations and consumers should inquire about asset protection before a real need arises. Consultants recommend putting a strategic plan in place well in advance of litigation. An iron clad plan to keep hard earned cash should be implemented as soon as accumulated wealth warrants it. Money is just like honey when it comes to drawing thieves and con artists out of the woodwork; but a well thought out strategy can keep financial wolves at bay.