Asset Protection Consultants
Basically, asset protection consultants help other people conceal their property from potential litigation and creditors through a variety of techniques. Caveat: asset protection is a serious legal issue. And, there is a fine line between legitimate shielding and fraudulent actions. In fact, some laws permit protection of assets to protect individuals and businesses from devastating loss. Therefore, since property shielding is a legal issue, an attorney or financial expert should handle the arrangements, not asset protection consultants. A person often pays several thousand dollars to learn asset protection techniques. Many training programs have sprung up in the past few years. Anybody looking into one of these expensive courses would do well to check accreditation. Many training programs lure an aspiring APC, as the consultants are often called, with promises of high income and flexible schedules. Program directors claim that consultants can make a lot of money, work as their own boss and work when they choose. Amazingly, it's the same theme heard time and time again: get a lot of money with little work. It rarely works out that way and it's against Biblical principles. Unless the APC is already an attorney or financial expert, he or she is not a professional or legal expert.
Some programs protray asset protection consultants as fighters against frivolous lawsuits filed by attorneys who are simply working to survive. In fact, potential litigation is the entire premise of this type of consulting business. Arguably, America is the most litigious society in the world with the most practicing attorneys in the world. As a result, a person practicing a profession or running a business in the United States stands a greater chance of being sued. Therefore, some people believe that properly trained asset protection consultants can help others protect what they have. It works on the theory that if a person gives their property away, then it isn't there to be taken away in a lawsuit or judgment. However, these practices seldom work in court. And consultants generally don't make the money they are lead to believe is possible. Ironically, when a property shielding plan fails or goes awry, an APC cannot practice law and an attorney will be needed to straighten the mess out. For the most part, APCs are not reputable in the eyes of many judges, lawyers, and juries. In fact, the entire consultant practice is afflicted by deception and what some people in the legal profession call sleaze. "If we believe not, yet he abideth faithful: he cannot deny himself. Of these things put them in remembrance, charging them before the Lord that they strive not about words to no profit, but to the subverting of the hearers." (2 Timothy 3:13-14) Christians wishing to protect their assets should think long and hard before employing an APC.
A closer look at a few terms used by asset protection consultants should raise some red flags. Terms such as conceal, hide, offshore trust, and place out of reach of creditors are often used. An online keyword search indicates that the federal government has successfully sued programs that train asset consultants for fraudulent practices. In a legal application of the practice, asset protection is sometimes referred to as debtor-creditor law. It is a set of legal techniques incorporating statutory and common law designed to protect individuals and businesses against catastrophic losses that occur from unexpected hazards such as business failures, lawsuits, and civil money judgments. Asset protection strategies are designed based on many factors. An attorney or financial expert, not asset protection consultants, should be involved in the management of an asset protection plan. There are many ways to design a plan, but some strategies include insurance, titling, equity stripping, and family limited partnerships.
Insurance is straight forward. Basically, it is a form of risk management primarily used as a buffer against possible losses. In its simplest sense, insurance is defined as the transfer of risk from one entity to another. Premiums are paid to do this. Car or homeowners insurance are prime examples. Although they are considered significant investments for most people, protecting a car or home is insuring that a small loss won't become a huge, catastrophic loss. Titling is a legal term in which a person may own either a legal interest or an equitable interest in a piece of property. The rights in property may be separated and held by different parties. Equity stripping is a real estate practice. Basically, investors acquire property from foreclosed homeowners in exchange for allowing the homeowner to continue living in the house as a tenant. Family limited partnerships are designed to move wealth from one generation to another. Generally speaking, they are holding companies. All of these techniques are designed to place assets beyond the reach of creditors.
Beware when working with asset protection consultants because there is a fine line between asset protection and fraudulent transfers of property. Obviously, federal and state law prohibits fraudulent transfers. Even if the transfer of assets is legally done, it might still have legal implications and is always an issue of morality. Creditors that have a legal right to the concealed property can suffer. An online search reveals that asset protection consultants often use what's referred to as the offshore trust market. Unfortunately, according to several online legal sites, there are no clear lines between what is permissible and what is not. However, a fraudulent transfer occurs when property is transferred in an effort to stop a legitimate creditor from taking the assets. A transfer of assets may be considered fraudulent, if a person knows the existence, or potential existence, of a legitimate creditor. Such a transfer could be undone. Individuals found guilty of fraudulent transfers could be charged with a crime and fined, ordered to pay restitution, receive probation, or imprisoned. Asset protection is a legal issue and is best left in the hands of a legal or financial expert.
Asset Protection ServicesAsset protection services can help an individual protect assets from those who might sue because of liability issues. One liability suit can often rob an individual of everything including their home. To protect one's own family an individual or company should consider hiring an attorney who can help them to protect their assets. Disputes can arise at any time between partners of corporations or from someone who claims that a product has caused them harm. Fear of lawsuits drive business owners to protect their own families by using attorney's that specialize in asset protection services. Insurance is another way that a person or company can protect themselves. Having a sufficient policy will go a long way in helping to protect assets in case of lawsuit. "Now therefore there is utterly a fault among you, because ye go to law one with another. Why do ye not rather take wrong? Why do ye not rather suffer yourselves to be defrauded?" (1 Corinthians 6:7)
One way to protect valuables is to have a trust that is not located in the country of residence. Asset protection services can provide information that will allow a person to keep their valuables confidential and discourage those who would sue. Lawsuits can get out of hand and totally strip a person of everything. People who are wealthy often hire attorneys to legally help protect them from being stripped of everything, usually as a means to protect their own family from destitution and loss. A trust allows an individual to have control over the assets in question even though they are out of reach to those who would seek to have them.
Many people who have a lot of money and valuables have worked very hard to get what they have. One lawsuit of liability could take everything a person owns unless they find ways to protect themselves. Asset protection services are one way to do that legally. A trust should never be used to avoid paying taxes or for other unscrupulous tactics. However, for those who need to protect themselves from people who would take everything they own a trust can be legally set up where a family is not totally devastated in case something happens. Most people are not prepared for what could happen until after they have been through it and have lost everything. A lawyer who specializes in these types of cases usually understands the importance of having a way to protect their clients in case of lawsuits.
Insurance is a must for any person who owns a business or has a lot of money and valuables. A liability policy can help to handle most claims that are legitimate. Asset protection services offer information on ways to protect assets with insurance that includes a separate liability policy besides just a homeowner's policy. There is also insurance that is for professional malpractice liability. Insurance can be very expensive and higher coverage will mean paying higher premiums. Professionals may suggest doing a trust and getting adequate insurance coverage. Of course this often depends upon the client's situation and how many assets are involved and how high the potential is for a lawsuit to occur.
There are companies who decide to have a basic family partnership where each member of the family has a share of the business. This helps to protect against lawsuits. Asset protection services provide some basic information about when a person is likely to be sued and when they are not. Someone who has less money is less likely to be sued because the person suing knows they will not be able to get much. Having the assets broken out between partners or family members can help to alleviate the threat of being sued. The level of protection that attorney's suggest is usually based upon how much money or how many assets a person has.
Assets can be in danger from other sources besides lawsuits. The condition of the economy can affect investments. A divorce can put a person's possessions and money at risk. Since every person or business has unique circumstances there is never going to be one specific way to guarantee the protection of wealth. Asset protection services can be provided on an individual basis depending upon where one's wealth is, what is consists of, and the risk involved. People often need educational services to help them make important decisions on how to protect their wealth. A good attorney or financial company will come up with a plan that fits the person's unique situation whether that be with setting up a trust, purchasing insurance protection, or coming up with a strategy to distribute to family members.
Anyone that has substantial wealth can be a target for lawsuits especially when assets are visible to others. Asset protection services can help a person to set up their business so that a person's wealth is separated from those who are considered takers. Considerations should always include being tax compliant no matter what is done to protect one's wealth. The solution is usually not found in just one area but may include every possible area that will work. Trusts, family limited partnerships, a limited liability company, insurance coverage, and offshore investments all provide choices that help to protect self and family. Additionally a person may choose to incorporate the business to a corporation so that personal assets are not part of the company. Many sites online have more information that can be helpful to anyone who is concerned about being sued.