Asset Protection Strategies

Many People and organizations are concerned about attracting frivolous lawsuits from employees, government regulators, business associates or others who may consider them to be an easy target. They seek a high level of privacy and protection for their assets.

Who Needs Asset Protection Planning?

* Those planning to sell their companies through a private sale or an IPO need asset protection strategies to minimize the income and estate taxes, protect themselves from potential claims and maintain the highest level of liquidity.

* Owners of real estate use asset protection planning to protect their assets from potential lawsuits in this way also.

* Asset protection planning is also used by professionals like lawyers, dentists, engineers and physicians who are under threat of being sued by their clients, patients or government agencies.

* Entrepreneurs use asset protection planning since they want to protect their financial security from business reversals.

* The elderly also need asset protection strategies to prevent their assets from being wiped out by medical and nursing home costs.

Asset Protection Strategies

There are many laws to protect creditors from those trying to conceal or protect assets. There are loopholes in these laws, which provide opportunities for asset protection planning. Some of these are life insurances, trusts, homestead exemptions and joint ownership. Asset Protection: Concepts and Strategies for Protecting Your Wealth by Jay Adkisson and Chris Riser, is a useful book for anyone interested in asset protection planning.


Offshore Asset Protection

In the late 1990s, asset protection planning was understood to mean using offshore tax and debtor havens. In 2000 the OECD and FATF announced that they would seek sanctions against tax havens unless they allowed tax cheats to be exposed. After the 9/11 tragedies of 2001, the IRS started investigating offshore tax havens even more aggressively and the offshore shelters declined even further.

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