Asset Protection

How to Protect Your Assets with the Wealth Preservation Fortress®

An excerpt from “Building Your Wealth Preservation Fortress®” by Alexander John Hay:

Although many people do not like to think about asset protection planning any more than they want to think about estate planning, the two are both very important and are related. Estate planning generally deals with how best to distribute your assets after death, asset protection planning has more to do with making sure you and your family get to keep what you have acquired now. This sounds simple enough, and often does not involve a great deal of effort to insure that your assets are safe and sound. However, in most cases people do not want to think about all the possible things that could cause them to lose everything they have worked so hard to create, and thus they often do not think about taking simple measures to preserve their assets from obvious and clear threats until it is too late.

The Reasons You Should Worry About Asset Protection

We live in a dangerous world, and our lives are punctuated by situations where we become liable to others for damages that may be beyond our ability to pay or otherwise resolve. A brief and non-exhaustive list of situations which often result in liabilities that destroy assets and wealth:

* Simple business transactions that have been entered into time and time again without problem can become typhoons of financial destruction due to changed conditions outside our control.
* Errors in judgment regarding simple matters that seem unimportant at the time.
* Mistakes committed by family and/or friends (or perhaps even by us).
* Family problems.
* Driving an automobile (even when we are insured and “protected”).
* Business transactions with trusted friends executed with a handshake.
* Bad luck.

It is very important that you review the possible risks you face in your personal and business life. Once this is done it is possible to determine what actions you need to take in order to protect your assets and insure that you and your family are protected. Not everyone is the same. Not everyone needs the same level of protection. It is for this reason that I have designed the Wealth Preservation Fortress®

[If you would like to read more, please click on the button to receive your Free ebook “Building Your Wealth Preservation Fortress®]

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A Nevada LLC Should Not Be Blindly Trusted… Nothing Should

Some bad news for those who think Nevada is some sort of Magical Talisman against creditors:
 
“This Opinion once again illustrates, as have so many similar opinions before it, that it is not nearly enough that a person set up a labyrinth of legal structures to protect themselves, but that for the legal structures to hold up against creditors they must be respected as such. Here, the debtor set up a complicated structure that might normally have put off creditors, but then treated the structure willy-nilly, transferred assets around with little or no purpose or documentation, and then also — the Mortal Sin in creditor-debtor law from time immemorial — personally used and benefitted from the very assets that he claimed were not his.
 
We also again see the implicit application of the ancient legal maxim of delicatus debitor est odiosus in lege, which is translated as “the extravagant debtor is condemned in the eyes of the law”. In other words, a debtor who continues to live a wealthy lifestyle should get no sympathy from the court. So it is here, another case where the debtor claims that he has no money with which to pay their creditors, but maintains a wealthy lifestyle including the use of residences in both in Las Vegas and Southern California. Is it really any wonder that the courts frequently go out of their way to slam such debtors? Not paying one’s debtors while living it up is not only flipping The Bird to creditors, but is also doing the same thing to the Court which has an interest in seeing that judgments are enforced. Why do debtors have such a hard time seeing that?
 
The problem is fundamentally one of clients (1) having some common sense and knowing when they should live an austere lifestyle, and (2) being able to actually follow the legal structure that was created for them. An attorney can create the very best asset protection structure for a client, but if the client then starts ignoring the structure and treating all the assets as his own, then good luck defending that.”
 
Another problem with Nevada noted in the article: Nevada has a very thin record of court rulings compared with other states, and as a result tends to favor California law in the absence of Nevada decisions. This is never a good thing.
 
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