Provo Utah Co. UT asset security company

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

Asset Protection Attorney

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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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Provo Utah Co. UT lifetime asset protection trust

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

Asset Protection Attorney

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Asset protection is one of the primary purposes for creating a limited liability company ("LLC"). LLCs provide two types of asset protection: (1) protecting the members from the liabilities of the company (sometimes called protection from "inside liabilities") and (2) protecting the assets of the LLC from the liabilities of the members (sometimes called protection from "outside liabilities").

If an LLC owns a rental house and the tenant sues the LLC because they slipped and fell down the stairs, this is an example of an inside liability. The general rule is that the tenant can sue the LLC, but they cannot go after the assets of the members unless they can pierce the corporate veil of the LLC. Piercing the corporate veil is very difficult to do. The test for a piercing of the corporate veil may vary slightly from state to state, but generally the tenant must prove that the LLC is the alter-ego of the member, and that the member has not treated the LLC as a separate and distinct legal entity. Because the laws protecting the members from an inside liability are similar in every state, the asset protection against inside liabilities is similar regardless of where the LLC is filed.

If a member is a physician and is sued for malpractice, the creditor may attempt to go after the assets of the LLC in order to collect on the judgment. This is an example of an outside liability because a creditor of a member is seeking to get into the LLC through the member. The remedies available to a creditor of a member vary greatly from state to state. In some states, the creditor of a member has a right to foreclose on the members interest and become the owner of it. In other states, the creditor of a member is limited to a charging order. A charging order is a court order which requires the LLC to pay any distributions that otherwise would have been paid to the member directly to the creditor. A charging order is not a good remedy for a creditor because the creditor is only entitled to distributions if the LLC decides to make a distribution; a creditor cannot force a distribution to be made. Therefore, an LLC offers greater asset protection if it is governed by the laws of a jurisdiction that strictly limits the remedies of a creditor.

Most if not all states follow the "internal affairs doctrine" established by the United States Supreme Court. This doctrine says that the internal affairs of a company are governed by the laws of the state where the company is filed, not the laws where the business activities take place or where the members are located. In fact, most states have a statutory provision stating that the internal affairs of an LLC are governed by the laws of the jurisdiction where the LLC was filed. This means that if an LLC is filed in Alaska and a California resident sues another California resident who is a member of the Alaska LLC for a tort committed in California, the issue as to whether the creditor can get information or assets from the LLC is governed by the laws of Alaska and not the laws of California. In other words, the state where an LLC is filed is critical in determining the asset protection provided by the LLC from outside liabilities.

Another issue affecting the asset protection provided by an LLC is confidentiality. In some states, the members and managers of an LLC are required to be disclosed and included in the state records which are available to the public. In other states, the members and managers are not made a part of the public record. Many people feel that they have better asset protection if the identity of the members and managers are not made public.

Having studied the laws of every state in this regard, and having read many scholarly articles on the subject, it is my opinion that Alaska provides the strongest asset protection against outside liabilities because they not only limit the remedies of a creditor of a member to a charging order, but they also prohibit a creditor from obtaining a court order for inquiries, accountings or directions (see Alaska Statutes 10.50.380). Several other states expressly limit the remedies of a creditor to a charging order, which should also be sufficient to prevent a creditor of a member from collecting from an LLC.

When it comes to confidentiality, I believe that the New Mexico LLC is the best option because there is no public disclosure of members and managers and no requirement for the filing of an annual report.

Nevis is a country in the Caribbean that has the best LLC laws in the world. Nevis LLCs offer the strongest asset protection and confidentiality of any jurisdiction. Nevis LLCs can be created and maintained without excessive cost or complexity. Any business or assets can be owned by a Nevis LLC, wherever it is located. If you want the strongest asset protection available, I recommend a Nevis LLC.

If you want the best LLC within the United States, I feel that Alaska is the best option for asset protection purposes and New Mexico is the best for confidentiality of managers and members. Alaska has a convenient online filing system, but New Mexico has lower filing fees and zero annual renewal fees. In conclusion, it is important to note that the laws described in this article are apt to change from time to time. This article is provided for informational purposes and should not be used as legal advice for any specific situation. Readers are advised to seek competent legal counsel in designing and creating limited liability companies or engaging in asset protection planning.

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