Featured Asset Protection Techniques

Discussion in 'Offshore Company & Bank Account Guides' started by Admin, Jun 5, 2016.

  1. Admin

    Admin Forum Moderator The Forum Cleaner


    By the time people reach their forties, they have usually amassed a few valuable assets like a house. With your growing financial portfolio and assets, it is important that you take steps to protect them. In this depressed economy, every asset you have and every dollar you earn is at risk. Creditors and litigators have become like vultures circling any successful person with unprotected assets. The only way to protect your hard-earned valuables is by setting up an appropriate asset protection plan.

    The most important thing you need to keep in mind is that you have to start planning in advance. Only a few things you do after a liability or claim arises can diffuse the situation. In fact, most things you do afterwards could be considered a ‘fraudulent conveyance’, and a court can make you unwind the transaction and give your assets to the creditors. As a general rule, there is nothing you can do once a creditor situation arises.

    Therefore, you need to take steps beforehand in order to ensure that creditors don’t have access to your assets.

    To protect your assets, you can remove your name from their ownership, but still retain control on them. You want to look poor but be rich. You can do this by transferring your assets into a limited liability company or LLC. A creditor cannot touch the LLC unless you make some distributions from it. They can’t touch any of the assets in the LLC or any assets purchased or sold through it.

    Another entity that can protect your assets is an irrevocable trust. Since you don’t technically own any of the assets you transfer into an irrevocable trust, your creditors won’t be able to attach any debt you owe. You can name a child, spouse or friend as the trustee and retain actual control over your assets while losing all legal ownership or control.

    Remember that trusts are meant for personal assets, while business assets go into LLCs. LLCs aren’t meant as your personal piggybanks, so don’t use them as such. If you place your personal assets in an LLC, the creditor can pierce the entity on the basis of some theory. You should only place your personal assets in a trust. There is a long and solid law that protects trust assets as long as your trust is properly drafted and funded.

    In any type of creditor situation, there are some exemptions granted to you by law. That means the law allows you to keep the assets under these exemptions no matter how much money you owe to your creditors. It is often a good idea to convert some of your ‘not exempt’ assets into assets that are exempt. The most common creditor-exempt entities are life insurance policies, pension plans, IRAs and annuities.

    When establishing an asset protection plan, always consult a professional. The specific steps you need to take will differ according to your specific situation. An asset protection attorney is a trained specialist who can put into place a plan that can protect your assets without being deemed fraudulent.
    bountymounty, JohnK, lostman and 22 others like this.
  2. lostguy

    lostguy Member Entrepreneur

    When I have read asset protection before I read this article I always thought it was for the rich people, very rich people and not for me. When I read lenders and creditors I realize that this could very well be applicable for me to setup some sort of asset protection entity or at least consult someone that actually know something about how to do it.

    Admin you have knowledge about how to do that? please PM me
    lostman, maxmoney, khan and 5 others like this.
  3. alley

    alley Offshore Agent Entrepreneur

    The asset protection is a new area for me since I just learned about a Holding company which should help me archive the asset protection part the agent says.
    lostguy, JohnK, maxmoney and 3 others like this.
  4. doxs

    doxs Offshore Agent Entrepreneur

    Can you list the basics to know when it's about asset protection? It seems to me there is a wealth of things to consider before I'm ready to setup a asset protection structure offshore or am I wrong?
    lostguy, lostman, lastchance and 5 others like this.
  5. Admin

    Admin Forum Moderator The Forum Cleaner

    There is a whole lot to know about asset protection when you plan to get your funds and property save from creditors and lenders. One of the most simple things to start with is the establishing of a Foundation or Trust in some protected offshore jurisdiction like Cyprus or the Seychelles.
    lostguy, khan, happyjohn and 3 others like this.
  6. Jack Dui

    Jack Dui Active Member Entrepreneur

    Its upto you, you'll decide when you protect your one, when it i s 1mil or 1 bil
    predator, auric, mert and 1 other person like this.
  7. deadpool

    deadpool Active Member Entrepreneur

    Why is Cyprus the darling amongst offshore options? Sorry if its a lame question.
    auric, Admin, BelizeFinancial and 2 others like this.
  8. uplana

    uplana Corporate Services Business Angel

    Yes exactly and if you know the laws in the offshore jurisdiction of your choice you can avoid to pay tax there, you can gain 100% privacy and you can hide your assets,property etc. from your creditors and lenders!
    predator, happyjohn and icecold like this.
  9. uplana

    uplana Corporate Services Business Angel

    They have a very good company law in Cyprus which actually benefits the business owners more than any government or tax office in this world.
  10. waltercrane

    waltercrane Member

    Can you tell me if there's an offshore juridiction available in India that can avoid me to pay tax?
    maxmoney likes this.
  11. shadowcaser

    shadowcaser Member

    Thank you for sharing this great techniques. I will try some off your opinion above in my asset protection.
    icecold likes this.
  12. johnskywalker

    johnskywalker Active Member

    This is gonna be a big help for my uncle who already have established a business and living the dream. I never new about limited liability company or LLC before but now after reading this article, its seems clearer on what my uncle needs to do to protect his assets.
    icecold likes this.
  13. Sany zeth

    Sany zeth Active Member

    there are not much offshore companies present in india as far as i know.
    BelizeFinancial likes this.
  14. maiden

    maiden Member

    I also use a similar techniques to protect my asset privacy. Anyway thank you for sharing OP.
    predator, BelizeFinancial and icecold like this.
  15. erzascarlet

    erzascarlet Member

    Thank you for the techniques bro. I will try some of your opinion above. I hope it going well.
    predator, kolagin and icecold like this.
  16. deadpool

    deadpool Active Member Entrepreneur

    This was the dummies( me included ) guide for Asset Protection.
    JohnK likes this.
  17. kanakke

    kanakke Member

    Thanks nice read. What I have also read somewhere is a Seychelles Holding Company own a Cyprus trading company, you move your property and money in the Seychelles and don't have to worry. This is also meant to be for asset protection purpose right?
    JohnK likes this.
  18. icecold

    icecold Active Member Entrepreneur

    People may realize that asset protection and offshore companies are some how synonym for each other. If you get the proper setup of your offshore company and bank account you will have a great setup to protect your asset from lenders and creditors and other outside forces!
    predator likes this.
  19. Anton

    Anton Active Member Entrepreneur

    This is gonna be good for future use because I'm in the part of my life where I start to cement my assets. 10 more years and I could be one of the most successful man in my career. Thanks for the tip mate.
    predator and kolagin like this.
  20. burden

    burden New Member

    From what I have read here on the forum ( and that's a lot of hours) I find the Seychelles Holding Company and the Cyprus trading company setup to be the best way to get all you require from your offshore company formation?!
    predator likes this.