The success of your asset protection plan depends on you being able to satisfy your known creditors both before and after the asset protection is implemented.
A properly implemented plan starts the statute of limitations –relating to fraudulent conveyance – running the moment it is funded. It is cheap insurance.
Do NOT wait until the world starts to fall down around you to do your plan.
Do the plan when you are financially healthy.
Remember, asset protection assumes that there are people who want to take your money and property away from you. The professional takers hunt down and corner people with unprotected assets.
You must use preventative methods that will discourage the professional takers by making it too difficult and to expensive to take your money. This is legal, time-tested and it works!
A timely settled asset protection plan keeps your valuable assets (business, savings, house, cars, stocks, bonds, IRA’s etc.) from any creditors, legitimate or otherwise who want to take them from you.
To provide solid protection, your plan needs to be set up when the financial seas are calm. I use a term called “old and cold,” which means your plan has been established and in force long before any attack takes place or before any creditors become known to you.
That way, no valid claim can be levied that states, “that you created your asset protection plan with the intent to commit fraud”; in other words, that you did it with the specific intent to keep your creditors hands off.
If you make the decision to properly implement an asset protection plan, you can normally prevent:
- Your creditors from reaching your assets, or actually the assets of the trust;
- Your soon-to-be-ex-spouse from taking you to the financial cleaners;
- Your business partner’s mistakes from ruining your nest egg;
- A disgruntled customer or employee from putting you out of business;
- The government from seizing and keeping your money.
In the unlikely event that you are sued, you’ll also be secure in knowing that you’ll normally have enough assets after a suit to:
- Start fresh
- Survive with the lifestyle you’re accustomed to
- Spend your money where you want and on whom
- Transfer wealth to those you love without the government or creditors touching it
- Retain complete control over the protected assets
All asset protection techniques have one thing in common: they each make it more difficult for a creditor to either find or take your assets.
By implementing a properly crafted asset protection plan, you can legitimately put a significant portion of your assets out of the reach of judgment creditors and still retain complete control over these protected assets.