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Home > Services > Domestic Wealth Planning > Asset Protection > The Superiority of Kinetic Asset Protection

The Superiority of Kinetic Asset Protection

There are proven methods of Asset Protection that work better then others. One method is called Kinetic Asset Protection.

kinetic: of, relating to, or produced by motion.

So, what is Kinetic Asst Protection?

A simple definition is the ability to move your assets at will whenever it is deemed necessary.

A review of general concepts in Asset Protection will lead to the answer as to why the Kinetic Asset Protection method is the most bulletproof method that exists.

Important Concepts in Asset Protection:
The first line of defense in Asset Protection is insurance. This means that a person should have adequate or better life insurance, long-term health care insurance and general health insurance. Anyone with “net-worth” should have Director’s and Operators Insurance (D&O) and adequate coverage against accidents.

Home defense should never be neglected. It is a flagrant error in Estate Planning. There are many options to choose from and some are very simple. It is certainly worth your investigation.

Asset Protection does not reduce taxes, except in the case of inheritance and death taxes Asset Protection is used as a tool in Estate Planning. It is Estate Planning that provides tax advantages, but you still have to pay your due share of taxes.

Every asset should be titled properly.

Asset Protection is not just a tool to protect wealth only for the rich.

Asset Protection will not keep someone from suing you. It will only keep them from garnishing or taking your assets.

Asset Protection encourages settlements by keeping the principle in control.

Some business entities by structure face more liability than others and some professions by risk of litigation face more liability than others.

There is no such thing as pre-judgment awards in the United States with the exception of some instances, such as divorce or the case of the IRS. In most cases, there is plenty of time to implement an Asset Protection Plan.

There is no defense for Fraudulent Conveyance or moving funds to avoid creditors and judgments.

The best time to implement an Asset Protection Plan is when the financial seas are calm and there is not threat of Fraudulent Conveyance.

One philosophy in Asset Protection is to “Divide and Conquer.” This means that all assets are separated from the liability of others (and an important reason to title your assets properly).

Most other countries in the world do not recognize our tort, antitrust and security judgments.

No pension is 100 percent safe from creditors (including the IRS) and taxes.

The use of Offshore Financial Centers (OFC) has become more prevalent, more monitored and safer in the past five years.

US Citizens must report all of their income to the IRS, no matter where it is earned.

Not all Asset Protection Planners are attorneys and not all attorneys can qualify as Asset Protection Planners. There are certifications that make some practitioners more knowledgeable than others.

Tax evasion, white collar crimes such as bank fraud, securities fraud, RICO are investigated everyday by the Department of Justice. These crimes occur offshore and domestically. No person, planner, professional or the like should ever recommend that you evade taxes or hide assets by not reporting properly.

Is it fraudulent conveyance?
No, when it is preformed properly it is not considered a fraudulent conveyance. A fraudulent conveyance is purposely setting up your affairs to defraud a known creditor. 

A creditor must find as asset to take it after a judgment. Do not volunteer any information and do not falsely fill out any government forms to hide anything.

Asset Protection is not a field or practice of law. It is however, governed by debtor-creditor law.

The kinetic model is the last, but not least of the concepts to be added to the Asset Protection concept list. When a trust deed is properly constructed it allows for the “movement” and transfer during a turbulent time or attack, but only if the movement was planned and recorded during non-turbulent times. The beneficiary remains the beneficiary, but the control changes and so does the jurisdiction.

When is the Kinetic Asset Protection model used?
  The Kinetic Asset Protection model is used from the beginning, but it is only enacted for movement when you are gong to be the potential target in a lawsuit or any other potential creditor. This could mean that the creditor or litigator is going to attack you in the jurisdiction of formation. When the kinetic model comes into play the creditor or litigator will have to start all over again and when it does, the trust deed allows for the same type of movement.

 

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