"You’ll often hear about market risk as related to investments, but a better way to describe market risk is to call it volatility—the up and down movement of the market —real risk is being alive and broke."
It’s an unfortunate reality that our U.S. justice system is unpredictable and, at times, unjust. Defendants are faced with expanding theories of liability and are often sued on the perception of deep pockets, and far too often judgments are rendered based on desired outcomes or emotions instead of the law.
Asset protection, also referred to as wealth protection planning, is a form of wealth management designed to protect and insulate assets from seizure by future creditors, and it's not limited to the extremely wealthy. In fact, most people have already engaged in some form of asset protection planning without even knowing it. The most common type of asset protection is the purchase of liability insurance—home owner’s, automobile, and even renter's insurance would be considered a form of asset protection planning—unfortunately, this type of planning can cause unintended consequences by actually encouraging a lawsuit due to perceived “easy money.”
In contrast to the sensational claims of Hollywood movies, asset protection is not about avoiding taxes or hiding assets in secret offshore accounts, in reality such conduct could result in detrimental legal consequences and is never advised. Rather, asset protection planning utilizes exempt property protections, insurance planning, business entity formation, and sophisticated domestic and offshore trust planning to properly and legally insulate your assets from the claims of future creditors. The primary goal of a well designed asset protection plan is to deter litigation—the protections put in place are viewed by the creditor as being too burdensome to litigate, either because of the low likelihood of being able to collect on any judgments, or because the cost of litigation outweighs any benefit potentially received. If avoidance of litigation cannot be achieved, the secondary goal of asset protection planning is to encourage settlement of the claim by increasing the defendant’s bargaining position, and potentially reduce the cost of what could otherwise be a costly and drawn out legal proceeding.
In conjunction with specialized attorneys, tax experts, and professional advisors, we develop dynamic solutions to help you preserve and protect your property, thereby preserving your standard of living.