Financial Asset Protection

Ambac Financial Group MBIA Inc.

Perpetual Trustees Australia Limited Trust

Guide to Financial Asset Protection

How asset protection services can help keep your hard-earned money safe
By Lea Terry

Protecting your assets may be the most important thing you ever do, not only for yourself, but also for your family and your business. And it's not just a strategy for the extremely wealthy, or for high-profile businesses; in fact, the earlier you implement an asset protection plan, the better, before something happens to threaten what you've worked so hard to build. Asset protection strategies are an important part of a company's basic operating and investment plan, to ensure that the company's assets are passed down to the heirs or successors, not taken by the government in the form of inheritance taxes, or lost in a lawsuit. Asset protection consultants such as an asset protection group or asset protection attorney can help you structure an asset protection strategy that's most relevant to your financial, business and family situation.

Creating an asset protection plan help you:

1. Securely transfer assets to your heirs or your company's successors, without lengthy court proceedings such as probate.

2. Protect your assets from lawsuits through asset protection services.

3. Minimize the tax costs associated with transferring assets to your heirs.

4. Use protected assets to create revenue for your business, through investments.

Action Steps

The best contacts and resources to help you get it done

Make a prenuptial agreement part of your company's financial asset protection plan Couples may hesitate to broach the subject of a prenuptial agreement, feeling that it suggests their relationship isn't that strong. However, a prenup involves more than deciding who gets what in a divorce; it can also work in conjunction with your will, to ensure that your spouse receives what you want them to. In fact, a prenup has some advantages over a will, in that a spouse can change his or her will at any time, without the other spouse's knowledge, but a prenup is agreed to by both partners. A prenup is a valuable resource for any business owner, so they can ensure they won't lose their company in a divorce settlement.

I recommend:  Find a qualified attorney to help you write your prenuptial agreement through the American Academy of Matrimonial Lawyers.

Protect your assets with an offshore trust An offshore trust is one of the most popular ways to protect your assets because it keeps money safe from creditors and also keeps it safe in the case of a lawsuit or divorce. With an irrevocable trust, you can put homes, stock or cash in the trust, naming yourself the beneficiary. Some jurisdictions don't recognize foreign judgments, so if you are sued, they cannot access those assets. This strategy is especially effective for small business owners, or those who may work independently, such as doctors and lawyers -- who also run the risk of being sued for malpractice.

I recommend:  The Offshore Company can help you with offshore banking, trusts and investing.

Help yourself, and others, with a charitable organization Creating a charitable organization is a good way of protecting financial assets, and can also save your company money in taxes. You can place your company's assets in a charitable remainder trust, which can then sell the stock, without paying capital gains tax, and reinvest the money. Your company can then receive income from the trust for a specified period of time -- which you set -- and when the trust ends, the remaining money goes to a charity you designate. And, you get a tax deduction for that contribution.

I recommend:  Request a free charitable remainder trust planning guide through The Charitable Remainder Trust.com, a company that provides trust planning services in all 50 states.

Tips & Tactics

Helpful advice for making the most of this Guide

• If you decide to put together a financial asset protection plan, do it early, before there's a chance you might lose your money. If you establish an offshore trust or transfer property after a lawsuit is filed, you could potentially face fraud charges and still lose your assets.
• Before you decide on a method of asset protection, be sure to consult with professionals, such as asset protection consultants, an asset protection group, or an attorney who specializes in estate planning and offers asset protection services.