Protecting Assets

Making The Case For Asset Protection

Going From Rich Man to Poor Man…
and Poor Family!

The "BIG #3" Risks That Americans Face Every Day.
 

  • EVERY 2 SECONDS ANOTHER AMERICAN GETS SUED!
  • MEDICAID ESTATE RECOVERY-THE LOAN YOU DON'T KNOW YOU HAVE?
  • CIVIL FORFEITURE - GOVERNMENT SEIZURE WITHOUT DUE PROCESS
EVERY 2 SECONDS ANOTHER AMERICAN GETS SUED!

The Legal Resource Network reports that 15 million lawsuits are filed in the US every year. That works out to a new lawsuit for one out of every 12 adults each year…year after year. Unless you’re exceptionally lucky, sooner or later your turn will come. You’re not going to like it.

Have you heard of the homeless man who was sued for $1 million? Of course you haven’t. Wealth and assets attract attention. It used to be illegal, but now lawyers actively search for people to sue.

They hunt. And when they go hunting, they look for the unprotected. The reason: today, lawyers are allowed to keep a share of all the money they can squeeze out of a lawsuit target— contingency fees.

Taking your family’s assets means a huge payday.

MEDICAID ESTATE RECOVERY-THE LOAN YOU DON'T KNOW YOU HAVE

Medicaid Estate Recovery is ready to pounce on your estate...and possibly your executor, personally, for reimbursement of all costs and expenses paid for your care, the loan that most Americans unwittingly enter into when they or their loved ones obtain Medicaid assistance.

It means that the state can get your home, the cash in bank accounts and other assets.  Here’s how it works: those who qualify for (there is no longer an asset test) and receive Medicaid long-term care will have to repay all of the costs for such care.  The state will have a claim for any amount of money it spent on that person’s care.  When the person dies, the state will file a claim against the probate estate of that individual and can file a lien against the home.  The home will have to be sold (or mortgaged) to pay the debt...

And your executors could be held personally liable! Read more on Medicaid Estate Recovery

CIVIL FORFEITURE - GOVERNMENT SEIZURE WITHOUT DUE PROCESS

State and Federal Governments have turned every law enforcement officer into Entrepreneurs to build the Civil Forfeiture Cash Machine!

The Washington Post, the Guardian, the Institute for Justice, the Heritage Foundation...and US have revealed the egregious Government over-reach:

Being innocent does not mean that a state has to return your property. The Supreme Court of the United States has held that the “innocent owner” defense is not constitutionally required. Furthermore, even in states where you do have an innocent owner defense, the burden is typically on you. Your property is presumed to be  guilty until you prove that you are innocent and that your property therefore should not be forfeited. In other words, you must prove (1) that you were not involved in criminal activity and (2) that you either had no knowledge that your property was being used to facilitate the commission of a crime or that you took every reasonable step under the circumstances to terminate such use. And all the while, the police retain your property. To cap it all off, the success rate for winning back property is low. Pragmatic property owners, however innocent, may reason that it is best to cut their losses rather than challenge the forfeiture in court.

Imagine owning a restaurant for 38 years and working six days a week just to keep the business going – and then watching the federal government drain your bank account even though you did nothing illegal.

How The IRS Can Secretly Drain Your Bank Account

SO, YOU THINK YOU ARE PROTECTED?

Why Creditors and the State Can Get to Assets in a Revocable Living Trust or Family Partnership ...that your trusted “Attorney” put you into, without telling you...

RULE #1. If you own it, control it, or have control over receiving a benefit from it, it can be taken from you.

Family partnerships and revocable living trusts DO NOT protect your assets from people with legal claims against you. That’s because although the trust or partnership is a legal entity, for legal purposes you’re treated as the owner of the trust assets...and your LLC or Sub-S Corp does not provide asset protection (refer back to RULE #1).

The Time To Start Planning Is Before A Claim Arises - For Procrastinators…Late Planning Usually Backfires

Think about how fire insurance works. If you wait until you smell smoke, it’s too late to get it. But insurance is easy and cheap to get if you get it now, before there’s a problem.

So when you get bit by one of the “Big 3”, how will you feel…knowing that you knew the risks, knew how to survive them, and did nothing?

So how do you get protection from the lawsuit and the wealth-grab that sooner or later is likely to show up? And how do you transform yourself into an unattractive target? How do you minimize state income tax on investment income? How do you protect your family and future generations?

By Taking Chips Off The Table
Taking Chips Off of The Table

Have you heard of the homeless man who was sued for $1 million? Of course you haven’t. Lawsuits aren’t filed against those with few assets or people who are uncollectible; they are filed against those with “deep pockets.” If you have assets or are coming into a windfall from a sudden wealth event such as an inheritance, lawsuit, stock options sale, business sale or speculative success like a currency revaluation, there are steps that you should consider to best protect your new wealth against lawsuits, attachment, confiscation, and depletion of cash and assets from unforeseen risks and catastrophic events.

There’s a gambling saying that goes something like, “If you want to be a winner, you have to walk away from the table a winner.” One time-honored method of reaching this result is to systematically take your chips off the table as you win them, so that your potential for losses stays small and controllable.

Asset protection planning is all about taking chips off the table in good times, so that you still can walk away from the table a winner no matter what happens in bad times. Those who worry the most about asset protection are those who are the most likely to get sued; self-employed business people, real estate investors, people in high-risk occupations, and people with wealth or who are contemplating it.

But average folks often get caught up in difficult situations, and thus if you have something to protect then the topic of asset protection crosses your mind during or after the fact.

Wealth can be a life-changing experience that can improve your life and the lives of those around you, but only if you keep it. Those with more assets are bigger targets for lawsuits. Don’t let your  wealth suddenly get stripped from you. Protect your existing assets that you have worked your whole life to accumulate AND protect your anticipated windfall, and you will sleep a little easier knowing your assets are better shielded now, and for future generations.

The Time To Start Planning Is Before A Claim Arises

For Procrastinators…Late Planning Usually Backfires

The most reliable way to protect your family’s assets from aggressive lawsuits (and from other hazards that could demote you from Rich Man to Poor Man) is with an Irrevocable Trust, and the best trust system in the U.S. is the Wyoming Qualified Spendthrift Trust in concert with a Wyoming Unregulated Family Private Trust System. Nothing else comes close in power and reliability. You keep investment management control over all the assets while your Trust puts up a brick wall against any attacker.

With that brick-wall protection in place, you can be certain that your assets are safe. And you lose your attractiveness as a target. Any attacker will know that even if he wins in court, there will be nothing to collect… and he won’t want to waste his time and money.

Lawsuit protection, Medicaid Estate Recovery avoidance, State Income Tax minimization, and Probate elimination is just the start of a long list of advantages that a Wyoming Trust System can deliver for you and your family.

Many things you can do will effectively provide asset protection before a claim or liability arises, but few things will afterwards. That’s because what you do after a claim rises could be undone by “fraudulent transfer” law. Moreover, the point at which a claim arises can be earlier than a person might think - it is, for example, usually much earlier than when a demand letter or a process server shows up at the door.

Asset protection planning after a claim arises is apt to make matters worse; think of it as getting a flu shot while you have the flu… and the flu shot itself making you even more woozy. It is a common misconception that the only thing a judge can do is to unwind a fraudulent transfer, leaving a debtor who unsuccessfully tried late planning no worse off than if he had done nothing.

To the contrary, both the debtor and whoever assisted in the fraudulent transfer can become liable for the creditor’s excessive attorney fees.

References

How The $1 Billion Kennedy Family Fortune Defies Death And Taxes-... Protected by a labyrinth of trusts http://www.forbes.com/sites/carlodonnell/2014/07/08/how-the-1-billion-kennedy-family-fortune-defies-death-and-taxes-3/

Estates could owe Medicaid
http://thegazette.com/2013/09/13/estates-could-owe-medicaid/#ixzz2s0wJl15Q

Son liable for his mother's $93,000 nursing home bill
Health Care & Retirement Corporation of America v. Pittas

Government Creditors "Picking the Bones of the Poor" and "Sucking the Last Ounce of Blood from the Corpse." Most likely, the farm will have to be sold. Source. Attorney Jeff Marshall, Williamsport, PA
http://marshallelder.blogspot.com/2010/09/medicaid-death-tax.html

The Guardian: Attorney general Eric Holder puts halt to warrantless 'stop and seize' tactics
http://www.theguardian.com/us-news/2015/jan/16/us-attorney-general-eric-holder-policy-prohibits-civil-forfeiture-police

Civil Asset Forfeiture: 7 Things You Should Know
http://www.heritage.org/research/reports/2014/03/civil-asset-forfeiture-7-things-you-should-know

Institute for Justice: Policing for Profit
http://www.ij.org/policing-for-profit-the-abuse-of-civil-asset-forfeiture-4

The Washington Post: Stop and seize
http://www.washingtonpost.com/sf/investigative/2014/09/06/stop-and-seize/?hpid=z3

The Washington Post: Government self-interest corrupted a crime-fighting tool into an evil
http://www.washingtonpost.com/opinions/abolish-the-civil-asset-forfeiture-program-we-helped-create/2014/09/18/72f089ac-3d02-11e4-b0ea-8141703bbf6f_story.html

Electronic Frontier Foundation: Asset Forfeiture and the Cycle of Electronic Surveillance Funding
https://www.eff.org/deeplinks/2015/01/asset-forfeiture-and-cycle-electronic-surveillance-funding
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