Asset Protection


Your business or investments take much of your time everyday.
How do you find time to learn the
ins and outs of protecting those assets?

Asset Sentry ALC simplifies it for you.

Asset Sentry ALC defines important terms as follows:

Asset structuring, protection and distribution are often intertwined in a good plan but they are different aspects of planning.

You structure your assets or business holdings to benefit the operation of your business and to enhance the production of income and gain.  But while doing that, you must look at the outside world with a considerable degree of suspicion.  You must structure your holdings, operate your business and protect yourself with a clear objective of keeping intact what you earned.  This involves setting up the business or investment entities that will work best for you—not your neighbor, or even your business partner.

Asset protection has two parts to it—privacy and protection.  Different devices or techniques can provide one or the other or both.  Basically, however, what you are doing is putting “speed bumps” in the road and trying to make it more difficult for those who wish you some harm to get at your assets.

Consider the two parts of asset protection—“They can’t find you” versus “They can’t get you”.  Generally, “they can’t find you” is privacy.  “They can’t get you” (even if they find you) is protection.  Effective asset protection must include both and be done in the structuring process, not after the fact once trouble has occurred and you encounter claims against you.  Hiding assets after trouble already knocked on your door may involve “fraudulent conveyance”.  A fraudulent conveyance, a transfer of the assets away from you out of the reach of creditors, may be undone by a court.  You may even suffer penalties for doing so.  The right set of business entities from the outset will generate protection while maximizing your profits.

Asset distribution is involved in wealth planning and financial planning and distribution to your heirs. Some of the distrivution plans will include asset protection devices.  There are quite a few states, perhaps 20% of states in the US, that provide asset protection statutes and allow for domestic asset protection trusts.  These entities serve both as asset protection and asset distribution plans.

The best plans make all three of these concepts work together

Here are some very basic principles to learn.  Make sure you know these before you start your asset-structuring plan, and then be sure your plan encompasses these principles.


Four principles of structuring:

1—Create silos, making each property separate, self-contained and unto itself.

2—Use multiple entities of different types to create these silos–LLCs, trusts, corporations, but only those suitable to you and your business.  The rule here is quality, not quantity.

3—Use entities in multiple jurisdictions, states or foreign countries

4—Own nothing, control everything!

 

Four personal principles to follow when you create wealth:

1—NO loose lips, divulge as few names on documents as possible and chat very little or not at all at gatherings or parties about what “you” own—especially if it is held by a different legal entity, not in your name.  Don’t divulge precious information just to brag about what or how much you own.

2—Don’t invest in anything you know little or nothing about.  If it’s new to you, learn it first.  An industry you know nothing about can be brutal if you do things wrong.

3—One size asset protection does not fit all.  Just because your friend has an LLC does not mean you need one.

4—Develop a new way of life—always conscious of asset protection and its basic principles.  It’s no different than remembering not to leave a nice leather bag visible in an unlocked car.  Don’t hang your financial life out there to be seen by all.  Thieves will take it.

With these in mind, set forth on a journey of profit and protection.