This is the process of protecting your assets during your lifetime from unforeseen judgments from professional, financial and individual liabilities and lawsuits, including divorce and bankruptcy.
The quickest way to become a millionaire these days, next to winning the Lottery is winning a lawsuit. Complete Asset protection is not for everyone. If you have at least $500,000 in liquid assets and over a million dollars in total, you may be a potential candidate for complete Asset Protection planning. Complete Asset Protection will utilize both a foreign and domestic trustee and a Trust will be established under the laws of a foreign jurisdiction such as the Cook Islands, Nevis, the Isle of Man or others.
The reason for this is these and other foreign jurisdictions have very debtor friendly trust laws. This type of planning is expensive to set up and takes a significant amount of time due to the level of due diligence that must be done to ascertain that no future potential creditor can claim this technique was done for the purpose to hinder, delay or defraud that creditor. But, when it is completed and done correctly, it can adequately protect the majority of your assets if a sizable judgment is entered against you.
In order to avail yourself of the benefits and protections of complete Asset Protection, it MUST be done at a time when there are no pending or potential claims against you. In other words, you can not try to protect the majority of your assets when you are aware of a claim or potential claim against you.
Less expensive methods of asset protection can be utilized such as using Domestic asset protection trusts, Tenants by the Entirety, Limited liability Companies , etc. but these vehicles do not provide the same level of protection as complete asset protection trusts set up under a debtor friendly foreign jurisdiction.