South Jordan, Utah what is asset protection

Asset Protection Lawyer - Selecting the Jurisdiction of a LLC For Maximum Asset Protection

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To safeguard your rental assets and properties there are some simple things that you may consider.

Prepare a strong and sound lease agreement

When there is some problem with the tenants or with your property, the first and foremost thing is to produce the lease agreement in the court of laws. A vital aspect of a lease agreement is to obey the state and local laws. So your chief requirement should be an airtight lease agreement.

Purchase properties in the name of a legal entity

Always try to build a legal entity under the name of which you could purchase property. Also ensure to have a joint ownership of the property. This would help avoid problems related to suing or litigation by others. As when you own a property in your name, it will instantly show up as an asset if someone chooses to sue you and this can call for serious legal problems.

You should also restrict the number of properties that each of your legal entities own as all the other undertaken properties would be susceptible, if even one among them is litigated. Hire reputable providers for proper asset protection services, when you find self-management difficult.

Provide appropriate legal disclosures to the tenants

You must give the tenants the most authentic and legal real estate disclosures while they are signing the agreement. An agreement with loop holes can make your tenants are successful in suing you if they wish to. Remember to check all your local landlord and real estate laws before creating the agreement and if required contact a local real estate lawyer specializing in landlord-tenant law.

Decent property management and tenant screening

Screening tenants is a real tactful and hard job, requires keen investigating knowledge and proper assessment, understanding for scrutinizing both individual and business tenants. The main purpose of this screening is to evaluate the probability of the tenant in fulfilling the terms of the rental agreement and also in taking care of the rental property in question.

Property management is an equally important aspect of property protection. It's always true that a good landlord who responds to his tenants when they call for a problem or concern about their legal assets, are less likely to be sued. So keeping a good rapport with your tenant is very essential. You can even hire property managers instead to help you manage and protect your rental properties in an efficient way.

All of these can prove to be highly time consuming and complex for most of you, so opting for some asset protection services could help greatly in bringing down all the hard work and tension related to managing your rental property.

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West Jordan, Utah what is a living trust

Asset Protection Lawyer - A Guide to Asset Protection

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Asset protection systems refer to the various strategies available for protecting your valuables from lawsuits and creditor-collection attempts. This sort of protection is usually adopted by most businesses and individuals. Some simple steps can help protect most of your assets without incurring much expense or trouble.

In fairly safe areas in which crime is not a major problem, a basic system designed for asset protection may be enough. Everyone will certainly want to protect his home, since a house is considered to be one's biggest and most expensive asset. There are three ways one can do this, which include physical protection, corporate protection, and insurance protection.

A physical protection system refers to what you can change in the property structure to protect it. The first point to remember is that you never buy a home in areas of high crime or natural disasters such as earthquakes or landslides. Then, consider installing security systems, burglar alarms, and fences. Home security systems are designed to help prevent theft or damage of your valuables while you are away from home.

Corporate protection is offered through limited liability companies, corporations, and trusts. Having your property in this entity provides legal security and possible tax breaks. The benefits of this protection vary according to your location, so it is important to look into the type of corporate protection while you are thinking about purchasing properties.

A third protection system, which is simple to do, is the utilization of the inherent asset protection of an insurance policy. Many insurance companies and banks provide you good rates for insurance on an investment property. An insurer is always ready to pay a specified amount of money to or for you if a specific incident occurs. The incident might be your falling sick, someone damaging your assets, or a natural disaster.

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Provo Utah Co. UT lifetime asset protection trust

Asset Protection Attorney: Information Security Policies: Foundations of Asset Protection

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A major goal of asset protection planning is to substantially diminish and reduce your financial profile. If you can restructure your assets in such a way so as to place them beyond the reach of future potential creditors, while at the same time maintaining a beneficial interest in those assets, you have succeeded in substantially reducing your financial profile. Accordingly, you are a far less attractive target for litigation because of issues of doubt of collectability, thus reducing the likelihood that you will be sued; or if you are sued, increasing the likelihood of a favorable settlement.

A trust can be an effective foundation for your asset protection planning. Trusts have been utilized for centuries as a means of conserving and protecting property for the beneficiaries of the trust. However, most domestic trusts do not provide protection from creditors. The typical revocable living trust, wherein the trustors are the lifetime beneficiaries and retain the power to revoke, amend and invade the principal of the trust, provides no protection whatsoever against the creditors of the trustors. Accordingly, absent specific legislation to the contrary, self created or self settled trusts are ineffective for asset protection planning purposes.

As was stated previously, most self settled trusts are not protected from creditors. However, recently, several states have provided various degrees of asset protection legislation for a self settled trust. The trust legislation in Alaska, Delaware, Missouri, Oklahoma, Nevada, Utah and Rhode Island is similar in many respects to the asset protection trust legislation found in several offshore jurisdictions. It should be noted, however, that the courts have not had an opportunity to pass muster on this type of legislation because of its recent enactment and because the statute of limitations in most cases has not expired. Depending on the timeline involved with respect to when the claim has arisen, these trusts can be and should be considered in appropriate circumstances, but only by an attorney who understands all of the ramifications.

Offshore asset protection planning normally involves the utilization of offshore trusts and other entities. Offshore planning generally raises justifiable concerns with respect to asset security and tax issues. The most efficacious manner to address these concerns is to make certain that you are receiving the best advice and counsel from a qualified expert in the area. You must be sure that the attorney with whom you are dealing has expertise in the field and is recognized in this regard by his peers.

A FAPT is a trust that is set up in an offshore jurisdiction which has enabling trust legislation providing for substantial protection against creditors of the trustor. One of the greatest advantages of the FAPT is the fact that by its very nature any legal attacks against its assets are transferred abroad to a different legal system. The FAPT is generally much more expensive to set up and create than a domestic trust and requires a certain willingness on the part of the Trustor to deal with offshore jurisdictions and trust entities. The FAPTs' greatest value is for asset protection planning well in advance of any potential creditor problem. Moreover, many times FAPTs are only used when the client already has some international connections and networking. Recent cases have emphasized the need for careful planning in the structuring of the FAPT if it is to be legally efficacious and successful in meeting the purposes and objectives of the trustor.

Most foreign jurisdictions do not recognize US judgments. This may force a trial de novo on the merits under the laws of foreign situs in order for the creditor to impose liability on the trustor and reach the assets of the FAPT. Obviously, the fees and expenses of this trial de novo and the burden of having to select offshore counsel can be substantial. Moreover, the FAPT jurisdiction, generally, requires plaintiffs to employ attorneys who are licensed in that jurisdiction.

Most foreign situs jurisdictions require that the burden of proof in challenging asset transfers to a FAPT is on the creditor and does not shift to the trustor. Moreover, many foreign jurisdictions impose a higher standard of proof upon civil litigation plaintiffs such as the "beyond the reasonable doubt" standard. This is in sharp contrast to the "preponderance of the evidence" principle utilized in US domestic civil cases.

The FAPT legislation of many jurisdictions establishes a statute of limitations for challenging asset transfers to a FAPT that begins to run on the date of transfer. This is contrary to US law where the statute may begin to run the date the transfer is "discovered" by someone with a claim against the trustor. Additionally, the statute of limitations of many FAPT jurisdictions is much shorter than the typical four year statute found under US law.

Manifestly, it is going to be much more expensive and inconvenient to prosecute a claim offshore. Think of the inconvenience of having to pursue a claim out of state and then multiply that by two to three times the cost to pursue the matter in a foreign jurisdiction. Many foreign jurisdictions prohibit contingency fee arrangements forcing the claimant to finance a litigation process entirely on his/her own. Creditors may think twice about having to deal with a completely different legal system out of the country. This unfamiliarity, plus the additional expenses and costs, and the entire uncertainty with respect to the process, adds a substantial element of protection to the FAPT.

The FAPT may assist the trustor in achieving several other objectives and planning goals independent of asset protection planning. Traditional estate planning issues such as the orderly transfer of property at death, the avoidance of probate, the strengthening of spendthrift provisions, greater privacy w, the management of offshore assets and businesses and premarital planning can all be addressed by the FAPT.

The easiest way to understand how a FAPT protects cash and securities is to focus on the process by which a claimant would try to reach trust assets. A claimant must either bring his case in a court that has jurisdiction over the trustee so that the court can order the trustee to give up the assets or initiate litigation in the court that has jurisdiction over the assets themselves so that the court can attach or seize the assets. However, if the client's offshore planning strategy is properly structured and implemented, no domestic court can successfully attack the plan because it would not have the ability to force the offshore trustee to expatriate or return the assets nor would it have the ability to levy on assets properly held outside of the United States.

Protecting non liquid assets like real estate, accounts receivable and business equipment involves the process of equity stripping. Although some of these assets can be put in charging order protected entities that may provide some limited protection, the most effective strategy available to protect a domestic illiquid asset is to strip that asset of its value by encumbering it as collateral for a loan and protecting the loan proceeds with your other liquid assets in the FAPT. Creditors are going to be very discouraged attempting to levy on an asset that may have substantial value, but has very little equity because of a loan encumbrance or lien.

Generally speaking, the establishment of the offshore asset protection plan will be tax neutral. The FAPT will either be a US grantor trust or a foreign grantor trust with a US grantor for US income tax purposes. It will be necessary to file various forms with the Internal Revenue Service in either case, but these forms will only demonstrate that the taxpayer is a responsible and law abiding citizen.

One very typical arrangement with respect to a possible offshore strategy would be for the client to establish the offshore asset protection trust utilizing an offshore trustee. The trust would then set up an offshore limited liability company which would be entirely owned by the offshore trust. You could be the manager of the LLC with direct signature control over bank accounts and securities accounts. In the event of a crisis, you would obviously resign as a manager and appoint a trusted friend, relative or a management company. There are modular variations to this strategy that can be worked out with your professional advisors.

The proliferation of plaintiff lawsuits and the expanding concept of liability that has become second nature in our court system have engendered much concern and anxiety about the preservation of wealth in the United States. Many professionals like doctors and lawyers as well as business owners, corporate executives, real estate developers and investors, contractors and others operate in an environment of high risk. Many such people lack confidence that they will be treated fairly by the US legal system and are desirous of reducing their financial profile and eliminating their liability potential. For these individuals, the offshore planning alternative may very well be the best planning device available for maximum comfort and piece of mind.

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Pleasant Grove Utah Co. UT trust and estate attorney

Asset Protection Attorney: Learn the Ways to Safeguard Assets From Liabilities by Asset Protection

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An asset protection trust offers a perfect solution for holding certain assets (life insurance policies, cash investments, real property, etc) for a specific beneficiary, which can be a group or a single person. There are several different advantages to transferring the personal belongings into a trust. Here are several of the key advantages that might be worth considering:

Protection from fees related to care homes - If an elderly relative needs to go into a long-term residential home, it is often the case that the associated costs will need to be personally met. A common way for the local authorities to receive funds for the long-term care is to essentially inherit the assets, with your main asset relating to the home.

By taking the action at an early stage that is well ahead of requiring any potential care assistant, you are able to protect the home and make certain the full benefit of the property is passed on to the chosen family members.

A highly effective solution for solving matters relating to inheritance - An asset protection trust can make it easier to transfer the belongings in the event of death (due to no transfer of ownership), and makes sure the assets are given to the persons identified at the time of writing the will. If the family circumstances are quiet involved where step-children might feature or where a marriage has broken down, you will likely find that using a trust can make the process go that much smoothly.

Helps to protect the inheritance from creditors - In a situation where a beneficiary of a Will is expensive financial difficulties with debts, any money that is automatically transfer via the information given in a Will could be seized from them by the creditors seeking to recover outstanding debts. But, since any assets transferred to a trust will remain part of the trust even after death, they aren't collectible by the creditors and will remain the full property of the beneficiaries.

Making certain those in need are given the right help - A further quality aspect to relying on the asset protection trust companies is to help those beneficiaries that might not be able to manage on their own. Whether this might relate to someone who often makes poor decisions or physically impaired, a trust is able to give specific guidance on how the benefit is passed to an individual to make certain they are cared for and provided long-term security.

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Orem Utah Co. UT elder law attorney

Asset Protection Lawyer - A Guide to Asset Protection

Asset Protection Lawyer

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A major goal of asset protection planning is to substantially diminish and reduce your financial profile. If you can restructure your assets in such a way so as to place them beyond the reach of future potential creditors, while at the same time maintaining a beneficial interest in those assets, you have succeeded in substantially reducing your financial profile. Accordingly, you are a far less attractive target for litigation because of issues of doubt of collectability, thus reducing the likelihood that you will be sued; or if you are sued, increasing the likelihood of a favorable settlement.

A trust can be an effective foundation for your asset protection planning. Trusts have been utilized for centuries as a means of conserving and protecting property for the beneficiaries of the trust. However, most domestic trusts do not provide protection from creditors. The typical revocable living trust, wherein the trustors are the lifetime beneficiaries and retain the power to revoke, amend and invade the principal of the trust, provides no protection whatsoever against the creditors of the trustors. Accordingly, absent specific legislation to the contrary, self created or self settled trusts are ineffective for asset protection planning purposes.

As was stated previously, most self settled trusts are not protected from creditors. However, recently, several states have provided various degrees of asset protection legislation for a self settled trust. The trust legislation in Alaska, Delaware, Missouri, Oklahoma, Nevada, Utah and Rhode Island is similar in many respects to the asset protection trust legislation found in several offshore jurisdictions. It should be noted, however, that the courts have not had an opportunity to pass muster on this type of legislation because of its recent enactment and because the statute of limitations in most cases has not expired. Depending on the timeline involved with respect to when the claim has arisen, these trusts can be and should be considered in appropriate circumstances, but only by an attorney who understands all of the ramifications.

Offshore asset protection planning normally involves the utilization of offshore trusts and other entities. Offshore planning generally raises justifiable concerns with respect to asset security and tax issues. The most efficacious manner to address these concerns is to make certain that you are receiving the best advice and counsel from a qualified expert in the area. You must be sure that the attorney with whom you are dealing has expertise in the field and is recognized in this regard by his peers.

A FAPT is a trust that is set up in an offshore jurisdiction which has enabling trust legislation providing for substantial protection against creditors of the trustor. One of the greatest advantages of the FAPT is the fact that by its very nature any legal attacks against its assets are transferred abroad to a different legal system. The FAPT is generally much more expensive to set up and create than a domestic trust and requires a certain willingness on the part of the Trustor to deal with offshore jurisdictions and trust entities. The FAPTs' greatest value is for asset protection planning well in advance of any potential creditor problem. Moreover, many times FAPTs are only used when the client already has some international connections and networking. Recent cases have emphasized the need for careful planning in the structuring of the FAPT if it is to be legally efficacious and successful in meeting the purposes and objectives of the trustor.

Most foreign jurisdictions do not recognize US judgments. This may force a trial de novo on the merits under the laws of foreign situs in order for the creditor to impose liability on the trustor and reach the assets of the FAPT. Obviously, the fees and expenses of this trial de novo and the burden of having to select offshore counsel can be substantial. Moreover, the FAPT jurisdiction, generally, requires plaintiffs to employ attorneys who are licensed in that jurisdiction.

Most foreign situs jurisdictions require that the burden of proof in challenging asset transfers to a FAPT is on the creditor and does not shift to the trustor. Moreover, many foreign jurisdictions impose a higher standard of proof upon civil litigation plaintiffs such as the "beyond the reasonable doubt" standard. This is in sharp contrast to the "preponderance of the evidence" principle utilized in US domestic civil cases.

The FAPT legislation of many jurisdictions establishes a statute of limitations for challenging asset transfers to a FAPT that begins to run on the date of transfer. This is contrary to US law where the statute may begin to run the date the transfer is "discovered" by someone with a claim against the trustor. Additionally, the statute of limitations of many FAPT jurisdictions is much shorter than the typical four year statute found under US law.

Manifestly, it is going to be much more expensive and inconvenient to prosecute a claim offshore. Think of the inconvenience of having to pursue a claim out of state and then multiply that by two to three times the cost to pursue the matter in a foreign jurisdiction. Many foreign jurisdictions prohibit contingency fee arrangements forcing the claimant to finance a litigation process entirely on his/her own. Creditors may think twice about having to deal with a completely different legal system out of the country. This unfamiliarity, plus the additional expenses and costs, and the entire uncertainty with respect to the process, adds a substantial element of protection to the FAPT.

The FAPT may assist the trustor in achieving several other objectives and planning goals independent of asset protection planning. Traditional estate planning issues such as the orderly transfer of property at death, the avoidance of probate, the strengthening of spendthrift provisions, greater privacy w, the management of offshore assets and businesses and premarital planning can all be addressed by the FAPT.

The easiest way to understand how a FAPT protects cash and securities is to focus on the process by which a claimant would try to reach trust assets. A claimant must either bring his case in a court that has jurisdiction over the trustee so that the court can order the trustee to give up the assets or initiate litigation in the court that has jurisdiction over the assets themselves so that the court can attach or seize the assets. However, if the client's offshore planning strategy is properly structured and implemented, no domestic court can successfully attack the plan because it would not have the ability to force the offshore trustee to expatriate or return the assets nor would it have the ability to levy on assets properly held outside of the United States.

Protecting non liquid assets like real estate, accounts receivable and business equipment involves the process of equity stripping. Although some of these assets can be put in charging order protected entities that may provide some limited protection, the most effective strategy available to protect a domestic illiquid asset is to strip that asset of its value by encumbering it as collateral for a loan and protecting the loan proceeds with your other liquid assets in the FAPT. Creditors are going to be very discouraged attempting to levy on an asset that may have substantial value, but has very little equity because of a loan encumbrance or lien.

Generally speaking, the establishment of the offshore asset protection plan will be tax neutral. The FAPT will either be a US grantor trust or a foreign grantor trust with a US grantor for US income tax purposes. It will be necessary to file various forms with the Internal Revenue Service in either case, but these forms will only demonstrate that the taxpayer is a responsible and law abiding citizen.

One very typical arrangement with respect to a possible offshore strategy would be for the client to establish the offshore asset protection trust utilizing an offshore trustee. The trust would then set up an offshore limited liability company which would be entirely owned by the offshore trust. You could be the manager of the LLC with direct signature control over bank accounts and securities accounts. In the event of a crisis, you would obviously resign as a manager and appoint a trusted friend, relative or a management company. There are modular variations to this strategy that can be worked out with your professional advisors.

The proliferation of plaintiff lawsuits and the expanding concept of liability that has become second nature in our court system have engendered much concern and anxiety about the preservation of wealth in the United States. Many professionals like doctors and lawyers as well as business owners, corporate executives, real estate developers and investors, contractors and others operate in an environment of high risk. Many such people lack confidence that they will be treated fairly by the US legal system and are desirous of reducing their financial profile and eliminating their liability potential. For these individuals, the offshore planning alternative may very well be the best planning device available for maximum comfort and piece of mind.

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Lindon Utah Co. UT contesting a will

Asset Protection Attorney: What Are The Advantages Of An Asset Protection Trust or DAPT?

Asset Protection Lawyer

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"Asset protection" has long been a strategy in divorce cases across the United States. The term "asset protection" refers to the use of a legal strategy in order to hide or shield assets from the Courts. Bitcoins, the relatively new internet currency, will most likely become the next frontier of asset protection.

In divorce cases, asset protection can take many forms. Sophisticated asset protection techniques involve transferring money to an overseas account, the formation of legal entities (trusts, corporations, limited liability companies) and other methods.

The most unsophisticated and simple form of asset protection, and perhaps the most common in divorce cases, is simply holding money in the form of cash (i.e., inside a home safe or in a bank safety deposit box). In this way, a person that is in the process of divorce believes that he can "protect" the cash from the divorce process. The divorcing spouse might keep the existence of the cash secret from his spouse, divorce lawyer and Court, in order to avoid being ordered to share the cash with his spouse. This strategy may or may not be successful, but it is surely not legal because it requires that the person misrepresent his assets to his spouse and to the Court.

A sophisticated divorce lawyer will know how to uncover hidden assets of this kind through the examination of financial records and other means of legal discovery. Bitcoin, however, has the potential to replace the hiding of cash as the most common form of asset protection in divorce cases. Given the structure of the bitcoin system and most divorce lawyers ignorance regarding bitcoins, it could become a significantly more successful method than hiding cash.

Bitcoin is the digital currency that was created in 2009 by the anonymous developer known the by pseudonym as Satoshi Nakamoto. It is a currency that exists only in digital form. All bitcoins and transactions are "registered" on the bitcoin block chain that is updated by bitcoin users rather than a centralized authority. The transactions, however, do not include names but rather the digital identification of each bitcoin. Bitcoin owners keep their bitcoins in a bitcoin wallet. The wallet is not necessarily a physical wallet, but rather various methods for storing the digital identification of the bitcoin. The wallet might be kept on a computer, the server of a bitcoin wallet website, or even a piece of paper.

While is theoretically possible to trace the transfer of a bitcoin by examining the block chain, one will only discover the public identification key of the bitcoin rather than the name of the owner. If the wallet is kept on a person's computer or on a website (where a party to a divorce registered his name) it is possible to discovery the existence of the bitcoins. However, wallets do not have to be associated with a name. Furthermore, if a person uses a "brainwallet" tracing a bitcoin to a specific person becomes almost impossible through any conventional method. A brainwallet is the use of a memorized passphrase in order to store a bitcoin.

The methods for discovering hidden cash will be the first approach of any divorce lawyer for discovering a bitcoin asset protection plan. Unfortunately many, if not most, divorce lawyers and judges are unfamiliar with bitcoins and the fact that bitcoins can be used to hide assets. A divorce lawyer who doesn't understand bitcoins cannot possibly be expected to uncover hidden bitcoin assets. If you have any suspicion that your spouse might be hiding assets, make sure your lawyer understands the bitcoin system and how to discover hidden bitcoin assets.

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Lehi Utah Co. UT living will lawyer

Asset Protection Lawyer - A Guide to Asset Protection

protect your stuff

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Asset protection systems refer to the various strategies available for protecting your valuables from lawsuits and creditor-collection attempts. This sort of protection is usually adopted by most businesses and individuals. Some simple steps can help protect most of your assets without incurring much expense or trouble.

In fairly safe areas in which crime is not a major problem, a basic system designed for asset protection may be enough. Everyone will certainly want to protect his home, since a house is considered to be one's biggest and most expensive asset. There are three ways one can do this, which include physical protection, corporate protection, and insurance protection.

A physical protection system refers to what you can change in the property structure to protect it. The first point to remember is that you never buy a home in areas of high crime or natural disasters such as earthquakes or landslides. Then, consider installing security systems, burglar alarms, and fences. Home security systems are designed to help prevent theft or damage of your valuables while you are away from home.

Corporate protection is offered through limited liability companies, corporations, and trusts. Having your property in this entity provides legal security and possible tax breaks. The benefits of this protection vary according to your location, so it is important to look into the type of corporate protection while you are thinking about purchasing properties.

A third protection system, which is simple to do, is the utilization of the inherent asset protection of an insurance policy. Many insurance companies and banks provide you good rates for insurance on an investment property. An insurer is always ready to pay a specified amount of money to or for you if a specific incident occurs. The incident might be your falling sick, someone damaging your assets, or a natural disaster.

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American Fork Utah Co. UT asset protection insurance

Asset Protection Attorney: Asset Protection and Charging Orders - What They Are - How They Work

Asset Protection Lawyer

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Asset protection systems refer to the various strategies available for protecting your valuables from lawsuits and creditor-collection attempts. This sort of protection is usually adopted by most businesses and individuals. Some simple steps can help protect most of your assets without incurring much expense or trouble.

In fairly safe areas in which crime is not a major problem, a basic system designed for asset protection may be enough. Everyone will certainly want to protect his home, since a house is considered to be one's biggest and most expensive asset. There are three ways one can do this, which include physical protection, corporate protection, and insurance protection.

A physical protection system refers to what you can change in the property structure to protect it. The first point to remember is that you never buy a home in areas of high crime or natural disasters such as earthquakes or landslides. Then, consider installing security systems, burglar alarms, and fences. Home security systems are designed to help prevent theft or damage of your valuables while you are away from home.

Corporate protection is offered through limited liability companies, corporations, and trusts. Having your property in this entity provides legal security and possible tax breaks. The benefits of this protection vary according to your location, so it is important to look into the type of corporate protection while you are thinking about purchasing properties.

A third protection system, which is simple to do, is the utilization of the inherent asset protection of an insurance policy. Many insurance companies and banks provide you good rates for insurance on an investment property. An insurer is always ready to pay a specified amount of money to or for you if a specific incident occurs. The incident might be your falling sick, someone damaging your assets, or a natural disaster.

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Alpine Utah Co. UT trust and estate attorney

Asset Protection Attorney explains Asset Protection Systems

protect your property

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A major goal of asset protection planning is to substantially diminish and reduce your financial profile. If you can restructure your assets in such a way so as to place them beyond the reach of future potential creditors, while at the same time maintaining a beneficial interest in those assets, you have succeeded in substantially reducing your financial profile. Accordingly, you are a far less attractive target for litigation because of issues of doubt of collectability, thus reducing the likelihood that you will be sued; or if you are sued, increasing the likelihood of a favorable settlement.

A trust can be an effective foundation for your asset protection planning. Trusts have been utilized for centuries as a means of conserving and protecting property for the beneficiaries of the trust. However, most domestic trusts do not provide protection from creditors. The typical revocable living trust, wherein the trustors are the lifetime beneficiaries and retain the power to revoke, amend and invade the principal of the trust, provides no protection whatsoever against the creditors of the trustors. Accordingly, absent specific legislation to the contrary, self created or self settled trusts are ineffective for asset protection planning purposes.

As was stated previously, most self settled trusts are not protected from creditors. However, recently, several states have provided various degrees of asset protection legislation for a self settled trust. The trust legislation in Alaska, Delaware, Missouri, Oklahoma, Nevada, Utah and Rhode Island is similar in many respects to the asset protection trust legislation found in several offshore jurisdictions. It should be noted, however, that the courts have not had an opportunity to pass muster on this type of legislation because of its recent enactment and because the statute of limitations in most cases has not expired. Depending on the timeline involved with respect to when the claim has arisen, these trusts can be and should be considered in appropriate circumstances, but only by an attorney who understands all of the ramifications.

Offshore asset protection planning normally involves the utilization of offshore trusts and other entities. Offshore planning generally raises justifiable concerns with respect to asset security and tax issues. The most efficacious manner to address these concerns is to make certain that you are receiving the best advice and counsel from a qualified expert in the area. You must be sure that the attorney with whom you are dealing has expertise in the field and is recognized in this regard by his peers.

A FAPT is a trust that is set up in an offshore jurisdiction which has enabling trust legislation providing for substantial protection against creditors of the trustor. One of the greatest advantages of the FAPT is the fact that by its very nature any legal attacks against its assets are transferred abroad to a different legal system. The FAPT is generally much more expensive to set up and create than a domestic trust and requires a certain willingness on the part of the Trustor to deal with offshore jurisdictions and trust entities. The FAPTs' greatest value is for asset protection planning well in advance of any potential creditor problem. Moreover, many times FAPTs are only used when the client already has some international connections and networking. Recent cases have emphasized the need for careful planning in the structuring of the FAPT if it is to be legally efficacious and successful in meeting the purposes and objectives of the trustor.

Most foreign jurisdictions do not recognize US judgments. This may force a trial de novo on the merits under the laws of foreign situs in order for the creditor to impose liability on the trustor and reach the assets of the FAPT. Obviously, the fees and expenses of this trial de novo and the burden of having to select offshore counsel can be substantial. Moreover, the FAPT jurisdiction, generally, requires plaintiffs to employ attorneys who are licensed in that jurisdiction.

Most foreign situs jurisdictions require that the burden of proof in challenging asset transfers to a FAPT is on the creditor and does not shift to the trustor. Moreover, many foreign jurisdictions impose a higher standard of proof upon civil litigation plaintiffs such as the "beyond the reasonable doubt" standard. This is in sharp contrast to the "preponderance of the evidence" principle utilized in US domestic civil cases.

The FAPT legislation of many jurisdictions establishes a statute of limitations for challenging asset transfers to a FAPT that begins to run on the date of transfer. This is contrary to US law where the statute may begin to run the date the transfer is "discovered" by someone with a claim against the trustor. Additionally, the statute of limitations of many FAPT jurisdictions is much shorter than the typical four year statute found under US law.

Manifestly, it is going to be much more expensive and inconvenient to prosecute a claim offshore. Think of the inconvenience of having to pursue a claim out of state and then multiply that by two to three times the cost to pursue the matter in a foreign jurisdiction. Many foreign jurisdictions prohibit contingency fee arrangements forcing the claimant to finance a litigation process entirely on his/her own. Creditors may think twice about having to deal with a completely different legal system out of the country. This unfamiliarity, plus the additional expenses and costs, and the entire uncertainty with respect to the process, adds a substantial element of protection to the FAPT.

The FAPT may assist the trustor in achieving several other objectives and planning goals independent of asset protection planning. Traditional estate planning issues such as the orderly transfer of property at death, the avoidance of probate, the strengthening of spendthrift provisions, greater privacy w, the management of offshore assets and businesses and premarital planning can all be addressed by the FAPT.

The easiest way to understand how a FAPT protects cash and securities is to focus on the process by which a claimant would try to reach trust assets. A claimant must either bring his case in a court that has jurisdiction over the trustee so that the court can order the trustee to give up the assets or initiate litigation in the court that has jurisdiction over the assets themselves so that the court can attach or seize the assets. However, if the client's offshore planning strategy is properly structured and implemented, no domestic court can successfully attack the plan because it would not have the ability to force the offshore trustee to expatriate or return the assets nor would it have the ability to levy on assets properly held outside of the United States.

Protecting non liquid assets like real estate, accounts receivable and business equipment involves the process of equity stripping. Although some of these assets can be put in charging order protected entities that may provide some limited protection, the most effective strategy available to protect a domestic illiquid asset is to strip that asset of its value by encumbering it as collateral for a loan and protecting the loan proceeds with your other liquid assets in the FAPT. Creditors are going to be very discouraged attempting to levy on an asset that may have substantial value, but has very little equity because of a loan encumbrance or lien.

Generally speaking, the establishment of the offshore asset protection plan will be tax neutral. The FAPT will either be a US grantor trust or a foreign grantor trust with a US grantor for US income tax purposes. It will be necessary to file various forms with the Internal Revenue Service in either case, but these forms will only demonstrate that the taxpayer is a responsible and law abiding citizen.

One very typical arrangement with respect to a possible offshore strategy would be for the client to establish the offshore asset protection trust utilizing an offshore trustee. The trust would then set up an offshore limited liability company which would be entirely owned by the offshore trust. You could be the manager of the LLC with direct signature control over bank accounts and securities accounts. In the event of a crisis, you would obviously resign as a manager and appoint a trusted friend, relative or a management company. There are modular variations to this strategy that can be worked out with your professional advisors.

The proliferation of plaintiff lawsuits and the expanding concept of liability that has become second nature in our court system have engendered much concern and anxiety about the preservation of wealth in the United States. Many professionals like doctors and lawyers as well as business owners, corporate executives, real estate developers and investors, contractors and others operate in an environment of high risk. Many such people lack confidence that they will be treated fairly by the US legal system and are desirous of reducing their financial profile and eliminating their liability potential. For these individuals, the offshore planning alternative may very well be the best planning device available for maximum comfort and piece of mind.

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South Jordan Salt Lake Co. UT trust law

Asset Protection Lawyer - Asset Protection - Protecting Yourself in a Divorce

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"Asset protection" has long been a strategy in divorce cases across the United States. The term "asset protection" refers to the use of a legal strategy in order to hide or shield assets from the Courts. Bitcoins, the relatively new internet currency, will most likely become the next frontier of asset protection.

In divorce cases, asset protection can take many forms. Sophisticated asset protection techniques involve transferring money to an overseas account, the formation of legal entities (trusts, corporations, limited liability companies) and other methods.

The most unsophisticated and simple form of asset protection, and perhaps the most common in divorce cases, is simply holding money in the form of cash (i.e., inside a home safe or in a bank safety deposit box). In this way, a person that is in the process of divorce believes that he can "protect" the cash from the divorce process. The divorcing spouse might keep the existence of the cash secret from his spouse, divorce lawyer and Court, in order to avoid being ordered to share the cash with his spouse. This strategy may or may not be successful, but it is surely not legal because it requires that the person misrepresent his assets to his spouse and to the Court.

A sophisticated divorce lawyer will know how to uncover hidden assets of this kind through the examination of financial records and other means of legal discovery. Bitcoin, however, has the potential to replace the hiding of cash as the most common form of asset protection in divorce cases. Given the structure of the bitcoin system and most divorce lawyers ignorance regarding bitcoins, it could become a significantly more successful method than hiding cash.

Bitcoin is the digital currency that was created in 2009 by the anonymous developer known the by pseudonym as Satoshi Nakamoto. It is a currency that exists only in digital form. All bitcoins and transactions are "registered" on the bitcoin block chain that is updated by bitcoin users rather than a centralized authority. The transactions, however, do not include names but rather the digital identification of each bitcoin. Bitcoin owners keep their bitcoins in a bitcoin wallet. The wallet is not necessarily a physical wallet, but rather various methods for storing the digital identification of the bitcoin. The wallet might be kept on a computer, the server of a bitcoin wallet website, or even a piece of paper.

While is theoretically possible to trace the transfer of a bitcoin by examining the block chain, one will only discover the public identification key of the bitcoin rather than the name of the owner. If the wallet is kept on a person's computer or on a website (where a party to a divorce registered his name) it is possible to discovery the existence of the bitcoins. However, wallets do not have to be associated with a name. Furthermore, if a person uses a "brainwallet" tracing a bitcoin to a specific person becomes almost impossible through any conventional method. A brainwallet is the use of a memorized passphrase in order to store a bitcoin.

The methods for discovering hidden cash will be the first approach of any divorce lawyer for discovering a bitcoin asset protection plan. Unfortunately many, if not most, divorce lawyers and judges are unfamiliar with bitcoins and the fact that bitcoins can be used to hide assets. A divorce lawyer who doesn't understand bitcoins cannot possibly be expected to uncover hidden bitcoin assets. If you have any suspicion that your spouse might be hiding assets, make sure your lawyer understands the bitcoin system and how to discover hidden bitcoin assets.

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