Domestic Asset Protection Strategies

Asset protection is very important, but it can be a very daunting task, which is why you need asset protection strategies such as QDOT, QPRT, and QTIP. There are companies out there that can and will help you with the process, so take your time to look around to see what strategies can be used for your situation. Often times, the safest choice is an estate planning attorney. Find various quotes from different places before choosing any one asset protection business to help you. The company will offer you various scenarios and from there you choose how you want everything to happen - which strategy you would like to run with.

Why Asset Protection

If you don't have asset protection, you are susceptible to getting attacked by creditors while your guard is down. So when a creditor is trying to collect money from you that is owed to them, but are unsuccessful, they can swoop in and attack the assets that you own. With asset protection, you will have the titles of the properties and assets you own placed in the name of the asset protection company you are working with. You act as a general partner with them over your assets, so you still get control over your properties. The reason for doing this is so that creditors are unable to find out what assets you own and won't attack them. They can only touch assets that have your name on the title.

You can use more than one asset protection lawyer to help segregate your safe assets from your unsafe assets. This will help you to have more anonymity, which will mislead creditors that are coming after you for debt that is owed.

Financing Scenario

The lawyer that you decide to work with may give you a line of credit that is secured by the assets that are under protection. So if you have a domestic business - your cars, equipment, stock accounts will be all anonymous to your creditors. It will have the asset protection company's name on the business, so they won't be able to use that asset to get to you, since it is not in your name. You still sign on the bank accounts of the offshore trust company that is holding your title, but your involvement with the business is still anonymous.

How You Can Use Asset Protection

Once you switch over the titles of your assets to the company of your choice, you will make payments for the services and goods that are provided to you by the business. This then transfers profits from the state you live, which is taxed, to an entity that is non-taxed. The federal taxes are still to be paid, but will be at a much lower rate than usual. It is important that you have a CPA that you can use to get good accounting advice from because you could face difficulties from the IRS or the state that you are living in; this would be due to transfer pricing issues.