Asset protection is a set of legal techniques and a body of statutory and common law dealing with protecting assets of individuals and business entities from civil money judgments. The goal of asset protection planning is to insulate assets from claims of creditors without perjury, fraudulent conveyances or tax evasion. Wikipedia
Ellis has experience & expertise in asset protection. The states are an important factor in asset protection, but more important is knowing what do to. We work in tax free states that have begun providing corporate & LLC offerings that challenge Nevada & Delaware without the reputation and expensive fees. In most of these states the asset protection features are better than both of the better know state. States we work with include Wyoming, Texas & South Dakota.
Asset protection is comprised of tax planning strategies and legal tools used for protecting assets from lawsuits and claims of creditors. For example, asset protection trusts are some of the most powerful tools that shield wealth from lawsuits. Here is an example of the process.
First, a professional will review your assets, risks and financial goals. Then, the planning process typically includes establishing structures, such as trusts and companies to create legal barriers between creditors and you, as the debtor. The strategies often use a combination of business and estate planning tools.
A properly established plan performs three primary functions: lawsuit deterrence, settlement negotiation leverage and/or placing your assets out of the reach of a litigation.