Asset Protection Corporation
An asset protection corporation? Why do you need
Fact: Well we do live in litigious society where 9
of 10 lawsuits in the world are filed in the United States. This happens every 30 seconds. Not surprisingly the US
has the highest rates of lawsuits filed in the world followed by the UK, Canada Australia and New
Fact: You almost don't have an option - if you own a business or practice a profession,
you have a one chance in three of being names a defendant in a lawsuit next year and its only getting worst. The
higher your net worth, the higher is your risk.
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:
1) For Investors an asset protection corporation can act as an holding
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.
2) 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.
3) For Executives use an asset
to restructure your compensation and stock programs to take advantage of reduced tax, asset protection and
global investment opportunities.
4) For Entertainers and Authors use an
asset protection corporation
in your contracts as an intermediary as an effective tax strategy.
5) For Athletes an asset protection
corporation will benefit
them in the same way 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.
6) 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.
7) 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.
8) For Individuals with inherited wealth, structuring your pre- inheritance wealth through an asset protection
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.