Rob Lambert here with Asset Protection Training
Today we’re going to be talking about the Asset Protection Trust
This is your trust, it’s a bucket, it’s designed to work with the trust companies to take your assets off your balance sheet. Remember, what you don’t own can’t be taken from you, that’s the key and purpose of this type of trust.
It’s designed to be tax neutral, it’s a flow-through entity like a triangle but it is separately recognized. It’s your first new baby, you’ve had a new child you have to have a trust company and a properly done trust.
It has no tax obligations, it’s a grantor trust you as the settlor retain the power to change beneficiaries at any time. You can also be the protector when the financial seas are calm. You can control anything that the trust does by firing the trust company at any time.
The trust company, first of all, doesn’t want to be fired and secondly, they don’t want to control your assets. Your assets are never in the asset protection trust. That’s one of my rules that isn’t actually written, nothing ever goes into the asset protection trust except the membership interest in the offshore LLC. All the trust company knows, and remember, trust no one. All the trust company knows is that this trust owns this LLC.
What the LLC does is, one none of their business at this stage unless you choose to tell them, but even more so it is not something they want to inquire about. You retain power by virtue of your position of being the manager of the offshore LLC.
Settlor, protector all of that upstream legal documentation, is going to be delivered and discovered in the event of a lawsuit. It is going to scare any creditor nearly to death when they read it. It’s got duress clauses, Cuba clauses, Spendthrift clauses, I mean it’s got more stuff to make a creditor wait than you can think of. You know what it honestly doesn’t matter because what the money, the assets, whatever they are in the offshore LLC managed by you which brings me to the next topic.
The offshore LLC, the offshore holding company managed by you. Trust no one except yourself and people you decide to and put everything in the offshore LLC.
This is Rob Lambert at Asset Protection Training
Thank you very much for listening and have a healthy and protected week.