What Asset Protection means and why use it
Differences and reasons between asset protection instruments
Todays , we live in an increasingly litigious society, where a judicial system favors plaintiffs and not defendants, and where courts clogged with thousands of civil suits demanding huge sums. A litigious society with an increased asset seizure by governments. In that situation protecting your assets can be vital.
Corporations who are subject to product liability beyond insurance coverage limits, medical doctors, physicians and attorneys who could be exposed to malpractice lawsuits, contractors and construction companies or any person or corporation-company, may be subject to litigation and subsequent asset seizure.
Asset protection is indispensable to deal with adverse situations such as: divorce, frivolous lawsuits, bankruptcy or simply as a wealth planning tool.
International trusts and private foundations are one of the most robust means for asset protection and estate planning, which allow to put legal distance between the owner and his or her assets, separating legal ownership and economic ownership, providing an extra layer of protection.
A trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.
The trustor (also called settlor or grantor), transfers his - her assets, through an inter vivos act or mortis causa, to another person, trustee, who is entrusted with the legal ownership of the trust assets, not for his own benefit, but for the benefit of other persons, the beneficiaries, or for the benefit of a specific purpose.
The private interest foundations on the other side, combines in one figure the benefits of the corporations and trusts. In conclusion, by means of a private interest foundation, a person denominated founder, grants a specific patrimony to the administration of a council, to be administered in benefit of one or several beneficiaries, with the objective that the result of this benefit is perceived in an immediate or future manner, or also conditioned to a future event.
Asset protection include also some basic and fundamental steps before recurring to trust or foundations
Step 1: Home Sweet Home
We believe the place to start is residency redundancy... an alternative place where you could show up in case of emergency, secure in the knowledge that you couldn't be turned away.
Step 2: Establish Passive Income In The Currencies You Need
Not ideal to relocate to Colombia in time of trouble if all of your income is in dollars. This means you're living at the mercy of the euro-dollar exchange rate. Better if you have passive income in pesos, for example.
Step 3: Keep Liquid Assets Where You Need Them
We at our conferences with private investors ,talk often about your best options for where and how to open an offshore bank account. In the context of creating your personal Bug-Out Plan, we want to suggest that you think through how much money you'll need to support yourself and your family in each of your backup residency locations in case of crisis.
Step 4: Consider Self-Sufficiency
When making any investment, we consider what would happen to our portfolio overall and to our lifestyle if that investment were to disappear completely. If the investment didn't pay out a thing, would my net worth and/or comfort level deteriorate significantly? If I can live with the answer to that question, then I invest.
The worst-case scenarios most people think about in the United States have to do with civil unrest, financial system breakdowns, and oil and food shortages. People prepare for these disasters by building bunkers and storing food and ammunition. But what happens when the food and ammunition run out? Most don't think beyond that. They are preppers but not really planners.
We at Offshore Visa , offer the most advanced planning strategies available worldwide to structure individualized international asset protection strategies. Through our firm you have access to our unique global network of law firm specialists, and other professionals who are experts in international asset protection. We always provide ethical, legal, and effective asset protection strategies to protect your personal assets. By leveraging the legal statutes of multiple jurisdictions for our clients they gain greater peace of mind by knowing the assets are protected from future liabilities.
Finding superior asset protection solutions requires both careful and professional attention to ensure that the wishes and needs of the client are fulfilled