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Home > Services > Domestic Wealth Planning > Asset Protection > Asset Protection Planning

Asset Protection Planning

Asset Protection has become a major practice area in the field of Debtor-Creditor Law.

Legislation has been enacted in many countries and is now being enacted in individual states leglislating regards with rights of individuals concerning the protection of their assets.

The evolution of the industry has taken the notion of Asset Protection from Caribbean trusts and defrauds to legislative legal tools. Many people think of Asset Protection as an offshore service. In general, offshore services have added superiority over domestic services; however, offshore services are not necessarily the correct choice for all assets.

Offshore centers call Offshore Financial Centers (OFCs) are now regulated by FinCen. An Offshore Financial Center is an area officially designated by the International Monetary Fund

(IMF), to be a place of offshore banking, investment, incorporation, company formation, foundation formation, trust formation, insurance and other vehicles of wealth preservation and asset protection.

The IMF is an international organization of 185 member countries that oversees the global financial system by observing exchange rates and balance of payment as well as offering financial and technical assistance. It was established to promote international monetary cooperation and exchange stability and orderly exchange arrangements to foster economic growth and high levels of employment and temporary assistance to countries that need help in these areas.

Domestic Asset Protection involves using the advantages in terms of taxation and protection of the local, regional and national governments. The techniques for each vary depending upon the jurisdiction. Many people choose their residence and even their citizenship by the advantages offered for protecting their assets.

Asset Protection exists to increase quality of life. It is in best public interest to control litigation and protect the assets of people. Asset Protection Plans often leave a certain portion of wealth exposed to cover anticipated liability, but secure the majority of assets in safe harbor.

All Asset Protection Planning should be done during the time that the person is free from creditor and litigation attack. If a person transfers assets during financial stress, it could be construed as Fraudulent Conveyance, which is punishable by incarceration and loss of the asset.

 
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