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Asset Protection Facts
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Asset Protection Facts

Asset Protection Facts

Fact – Trusts and businesses are the number tool used by Americans to protect their assets from creditors.

Asset Protection Trusts are trust are legal business structures used to insulate an individual's assets from every entity that is not permitted by Trust Deed benefits from the Trust. The only entry from outside the Trust Deed is by the jurisdictional authority for reporting and disclosure (such as the IRS).

An asset protection trust is usually established in an offshore jurisdiction, although the assets will probably remain in the U.S. under the direct control of the person who established the trust (the "settlor").

Fact – Litigation costs each person an increasing amount every year. Tort costs amounted to $880 per person in 2005. This compares with $12 per person in 1950.

 Billions



Fact – Most lawsuits are settled out of court.

The fact that most lawsuits are settled out of court with attorneys who can negotiate shows enhances the philosophy that anyone who is in control can negotiate a better settlement.

Fact - Median compensatory awards in occupational negligence cases range from $15,000 for funeral home negligence to $600,000 for abuse by clergy, according to a 2002 Jury

Verdict

Research analysis of jury awards for emotional injuries resulting from occupational negligence. The median award in legal malpractice cases is $167,000; the median award for psychiatrist/psychologist negligence is $200,000. Average awards in such cases range from $60,000 for funeral negligence to $1.3 million for cleric negligence. The average award for legal malpractice and psychiatrist/psychologist negligence is $643,000 and $639,000, respectively.

Fact - Litigiousness is not only pushing up the cost of insurance but also the amount of insurance that businesses must buy to protect themselves against lawsuits, potentially driving up the price of goods and services for all consumers; the greater the acceptance of litigation, the greater the risk to all.

 Billions

Fact - Jury Verdict Research data show that in 2005 the median, or midpoint, plaintiff award in personal injury cases was $45,000, about the same as the previous year but considerably higher than the $32,000 level in 2002.

 The costs of settling a claims includes defense, litigation and medical cost containment, expenditures for surveillance, attorney's fees, litigation management and fees for appraisers, private investigators, hearing representatives and fraud investigators.

Fact – Liability is a flow through responsibility analogous to a parent being responsible or having “duty” to a child.

Use a separate entity for each liability generating asset and never mix liability generating assets. For instance, an apartment house should not be owned by the same entity that owns a printing business.

Always avoid general partnerships and handshake agreements, because doing so only causes trouble. Many people are unaware that any general partner can commit the partnership (and therefore every other general partner) to any legal contract. All general partners are jointly and individually liable.

Fact – In some entities or companies, partners can sue partners.

Avoid general partnerships and handshake agreements. This only causes trouble. Did you know that any general partner can commit the partnership (and hence every other general partner) to any legal contract (like taking out a loan). All general partners are jointly and severally liable.

Even if a person puts into effect a state of the art asset protection plan, he should still keep adequate insurance. Usually the main value of a good policy is that the insurance company must provide him a defense .

Fact – Jurisdiction determines that authority of the law and in Asset Protection the jurisdiction that the creditor must assail.

No country in the world automatically recognizes U.S. based judgments because that fact is that most countries think that U.S. tort laws, securities laws and anti-trust laws are nonsensical. It is also true that no country in the world recognizes US tax judgments.

FACT – Only successful people are attacked!

It is obvious that success attracts lawsuits. Keep a low profile. If people believe that a person is rich, chances are that he will be sued. It should also be remembered that in order for someone to take away assets they first have to be found.

Finally, it should also be remembered that a good asset protection plan does not rely on stealth alone It should work even if every single document is discovered.