Establishing
an asset protection corporation is virtually becoming
an necessity to ensure your assets are out of reach
The
problem is there is a sharp dividing line
between establishing a legal asset protection
corporation and an illegal one. What you do can
be classified as an action taken to defraud creditors.
Furthermore be aware that there are various operators
out there claiming that they can protect your
assets. Some will in fact steal your assets, some
will leave you with no protection or open you
up to the possibility of criminal charges. Many
will all three. So what is one to do?
The
obvious thing is to first get educate yourself
and get very familiar with the various structures.
Asset protection planning often involves setting
up a series of trusts, partnerships and/ or offshore
asset protection corporations to hold legal title
to your assets.
Advantages
are multiple:
For
Investors an asset protection corporation
can act as an holding company for investments
made in multiple jurisdictions and markets. In
your private portfolio use an asset protection
corporation in inheritance planning to reduce
the cost and delays in probate.
For
Entrepreneurs an asset protection corporation
offers enhanced investment returns, better after
tax profits, and reduced risk. Profits can be
made as a separate entity outside of jurisdiction
where one is domiciled with little or no tax obligations
and can be easily transferred to ones heirs without
the normal encumbrances.
For
Executives use an asset protection corporation
to restructure your compensation and stock programs
to take advantage of reduced tax, asset protection
and global investment opportunities.
For
Entertainers and Authors use an asset protection
corporation in your contracts as an intermediary
as an effective tax strategy.
For
Athletes in the same way, an asset protection
corporation will benefit them by reducing their
taxes onshore. The athlete will be in effect employed
through their corporation. This way any expenses
can be absorbed by the company and the athlete
need only draw a salary sufficient for personal
expenses only minimizing their personal tax exposure.
For
Owners of Intellectual Property using an asset
protection corporation, property rights can be
assigned to it ensuring revenues are received
to it rather than to them personally. Furthermore
the rights can remain offshore indefinitely ensuring
easy succession.
For
Medical Practitioners and other Professionals
using an asset protection corporation contracts
for medical services effective restructures how
their income is generated vastly reducing their
liability exposure and personal tax owing.
Individuals
with inherited wealth, structuring your pre-
inheritance wealth through an asset protection
corporation can simplify the succession process
by putting it in a no-tax or low-tax jurisdiction.
It also offers a new world of much higher yield
investment opportunities not available to those
under the Securities and Exchange Commissions
jurisdiction as a US or Canadian CItizen.
For
the wealthy the modus operandi is ESP 'E'ducate,
'S'tructure and 'P'articipate in international
investments. With education and proper estate
planning and structure minimize your risk and
benefit from higher investment returns with minimal
tax penalties.
