By EWN •
Published: 30 Nov 2021 • 13:43
Asset protection trusts are usually established by those who have high risk occupations and wealthy individuals that are prime targets for credits due to their attractive network. But that does not exclude the everyday person from the practice of protecting one’s assets, as they can also be used in lieu of a prenuptial agreement or as a safety net in the event that creditors come knocking.
What took hard work and time to accumulate could be lost in an instant with a lawsuit or bankruptcy, asset protection provides a level of peace of mind that in the event that something should happen, all is not lost. It is therefore vital to be aware of the laws that can safeguard certain assets and the measures that can be taken to protect your savings from being lost.
Wyoming LLC attorney explained having asset protection to be as obvious as that of having health, home and car insurance. The protection forces creditors into better settlements or gets them to dismiss the case altogether, whilst not having any plan just throwing your financial affairs into the wind and hoping that it will just fall into place. Purchasing an asset protection plan will often be cheaper than having to pay the price for leaving yourself exposed to the worst-case scenario.
International citizens look to the United States for asset protection as the laws that protect assets in the event of lawsuits, bankruptcies, and collection agency actions provide increased protection in comparison to their own country. Furthermore, the law does not require american citizenship for the protection to apply.
Whilst the United States as a whole serves as an excellent jurisdiction for asset protection, the laws do vary from state to state. Wyoming is often seen as the most attractive state due to their flexible and favorable tax laws that favor those who choose to set up trusts and LLC’s in the state. The state is also well known for their privacy laws that allow for anonymous companies.
Forming a Wyoming LLC or Wyoming Asset Protection Trust is one of the best ways to protect what is yours from opportunists and misfortune. By utilising registered agent services asset owners will be able to ensure that they are covering all of their bases for protection. The state’s limited liability protection ensures that LLC business owners are not to be held responsible for debts and liabilities of their business as they are protected by a corporate veil or shield.
Asset protection trusts are usually combined with that of a holding company and subsidiaries to amplify their benefits. When utilising a 3rd party to assist with your asset protection strategy, look for one that provides multiple offerings. Wyoming trust and LLC Attorney for instance provides clients with two complimentary companies,EINs and a virtual office within the first year.
Holding companies are not dependent on location and as such they do not engage in any operations of their own. This provides a level of flexibility with regards to establishing their domicile, which is another reason as to why so many Europeans and others from around the world use Wyoming LLCs or Corporations as their parent company. This means that subsidiaries may now be established either in the state of Wyoming or from wherever the owner wishes to operate from.
In most states e-commerce and real estate companies are generally not viewed to be transacting businesses, which is another reason why Wyoming is favoured over a state such as California for instance, to set up children companies. It is always best to consult with a legal professional for further information.
Asset protection is not just for the upper class elite and is a vital component to plan for in the unfortunate case that it might be needed. Asset protection will protect your assets but that of your business as well. It also ensures that legacies such as the family house or the vintage car that got passed on and restored through the generations stay in the family and out of the hands of creditors looking to cash in.
With so many uncertainties, planning for the worst whilst hoping for the best is the closest that one can get to peace of mind.
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