What Is The Process For Creating An Asset Protection Plan?
There is a three-step process for creating an asset protection plan.
Step 1, limit your liability. Two of the most common sources of liability come from running a business, and from owning a particularly dangerous or risky asset. Any risky assets or businesses should be placed into a limited liability company so that if something goes wrong due to one of these assets, a creditor does not come after you personally.
Step 2, limit your creditors to a charging order. By creating a family limited partnership you can prevent a creditor from taking any of your property until you choose to make a distribution. While you withhold distributions, the individual holding the charging order has to pay your share of taxes. Limiting creditors to a charging order is an excellent way to make yourself an undesirable person to sue.
Step 3, allow removal of your assets from the jurisdiction of the US legal system. By creating an internationally registered trust you can force creditors to bring their claim in a foreign jurisdiction where it is extremely unlikely that they will recover.
Follow all 3 of these steps, and you will have a solid asset protection plan.