Nevis or Cook Island LLC for basic proactive asset protection

[TylerDurden]

I hope this is the appropriate place to post this. Let me begin by saying that I realize nothing is full proof and as with almost everything in life there is always a series of trade offs.

I am semi-retired and would like to proactively protect some of my assets in the unlikely event they should ever become threatened. While I don’t foresee this happening, I think having some basic asset protection would be prudent.

It appears that Nevis and Cook Island LLCs at least on the surface, provide some basic asset protection, limiting remedies against the assets held in that LLC to charging orders. Unfortunately, certain local jurisdictions, (as occurred with a recent case in Florida) may not view an LLC, particularly a single person LLC as a legitimate, separate entity. It has been suggested that a certificated LLC would address this issue.

What I would like to know is which of the above jurisdictions is the most trustworthy and stable for establishing an LLC that would essentially “hold” assets.
Of course I would be grateful for any insights regarding the above

 

[CaptK]

You need a Trust or a foundation.
LLC. Is not enough protection unless it's in someone else's name.

 

[James Turner]

Asset protection is achieved by creating distance between the person under attack or that may be attacked and the asset requiring protection. Simply forming a single member LLC with commonality between the former owner of the asset and the new owner of the asset will not really create the break that is needed to protect the asset. There are various ways to achieve this, but I would suggest you take further advice on the best route for you, which will depend on the asset being protected.

 

[Davis123]

Asset protection is achieved by creating distance between the person under attack or that may be attacked and the asset requiring protection. Simply forming a single member LLC with commonality between the former owner of the asset and the new owner of the asset will not really create the break that is needed to protect the asset. There are various ways to achieve this, but I would suggest you take further advice on the best route for you, which will depend on the asset being protected.

I think you need to give up your assets to this LLC under a trust for protection and that is the best way to keep it safe.

 

[James Turner]

Using a Trust is a great way to do this.

 

[TylerDurden]

I am grateful for all the replies.

I realize an offshore trust is the gold standard in asset protection but the relative loss of control plus the annual administrative requirements make this seem like an overly cumbersome instrument for my needs.

A simple alarm system will certainly not make a home burglary proof but it might provide at least a deterrent. Even a negotiable deterrent is better than no deterrent afaic.

That said, if an offshore LLC provides no real value, deterrent or otherwise, then perhaps I should explore some other options.

Again, thanks to everyone for the insights

 

[Davis123]

I am grateful for all the replies.

I realize an offshore trust is the gold standard in asset protection but the relative loss of control plus the annual administrative requirements make this seem like an overly cumbersome instrument for my needs.

A simple alarm system will certainly not make a home burglary proof but it might provide at least a deterrent. Even a negotiable deterrent is better than no deterrent afaic.

That said, if an offshore LLC provides no real value, deterrent or otherwise, then perhaps I should explore some other options.

Again, thanks to everyone for the insights

It all depends on where you are keeping them too. Nevis is cheaper if you shop around but it depends on type of protection you need.