Asset Protection Law Facts

• An asset protection trust is any trust utilized to insulate assets from creditor attack. An asset protection trust is normally established in an offshore jurisdiction, although the assets will more often than not remain in the United States under the indirect control of the person establishing the trust (the "settlor").
• Many unqualified people are marketing themselves as asset protection experts. Always check references and the training of the supposed expert. Anybody claiming expertise in asset protection should have substantial tax and international law training.
• Always use a separate entity for each liability generating asset and never mix liability generating assets. For example, an apartment house should not be owned by the same entity which owns a printing business.
• Avoid general partnerships and handshake agreements. This only causes trouble. Did you know that any general partner can commit the partnership (and hence every other general partner) to any legal contract (like taking out a loan). All general partners are jointly and severally liable.
• Avoid general partnerships and handshake agreements. This only causes trouble. Did you know that any general partner can commit the partnership (and hence every other general partner) to any legal contract (like taking out a loan). All general partners are jointly and severally liable.
• Even if you effect a state of the art asset protection plan you still should keep adequate insurance. Often the main value of a good policy is that the insurance company must provide you a defense.
• Remember, no country in the world automatically recognizes U.S. based judgments. In fact, most countries think that our tort laws, securities laws and anti-trust laws are nonsensical. Also, no country in the world recognizes US tax judgments.
• Don't show off and don't put everything in your name. If people think that you are rich you will be sued. If you are unwilling to have a modest lifestyle (and many of us are not willing) then keep a low a profile as possible and don't title your assets directly in your own name. Remember, to take your assets they first have to be found. Also remember that a good asset protection plan does not rely on stealth. It should work even if every single document is discovered.

Contact a Illinois Asset Protection lawyer today and get a free consultation!

	Did You Know?
	A Living Trust is an entity created for the purpose of holding and managing assets A Living Trust is an entity created for the purpose of holding and managing assets for the benefit of the creators of the Trust (the “Trustors”) during their lifetimes and then for the purpose of management and distribution of the assets to the beneficiaries designated by the Trustors. There are various reasons for creating Living Trusts: (a) To avoid probate administration on death of either Trustor. (b) To avoid a court supervised conservatorship in the event of lifetime disability of either Trustor. (c) To provide for the management and distribution of assets during continued administration of the Trust or upon its termination.