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100 dollar bills with a padlockAsset protection is the closely guarded secret of the Wealthy that enables them to build and grow their wealth on a continual basis. Obtaining Financial Independence and becoming Wealthy is simply the process of continually increasing the gap between the amount of money that comes in and the amount that goes out. Through , protection from lawsuits, and estate and you can create a security system to protect your assets. In this writing I am going to talk about the three proactive strategies of Asset Protection in the War On Wealth. Within these strategies, exist a myriad of techniques that can be applied with infinite possibilities for any given situation, but here are the basics.

The Three Proactive Strategies of Asset Protection are:

  1. Encumbering or Equity-Stripping your assets.
  2. Shifting Title to your assets to one or a number of protective entities.
  3. Owning Exempt assets.


1. Encumbering Or Equity-Stripping Your Assets

What you want to do here is to fully mortgage or encumber your exposed asset such as your home or other real estate etc., and at the same time fully and safely protect the loan proceeds. This reduces the amount of equity that is vulnerable to lawsuits. Wait a minute, people would not sue me for no reason. I must have deserved it. Think again. We live in the most litigious country in the world where people seem to think that what’s theirs is theirs and what’s yours is theirs. Just ask the lady who sued for spilling the hot coffee in her lap at McDonald’s. Sound familiar.

2. Shifting Title To Your Assets To Protective Entities

The purpose of this venerable tactic is to prevent your judgment creditor from seizing those sheltered assets. These entities can include a number of trust’s or other instruments and devices in a number of domestic or foreign entities.

3. Owning Exempt Assets

Owning assests that have either state or federal statutory protections from lawsuits and creditors is usually one of the simplest strategies. Your objective here is to own few (if any) assets that are not exempt or self-protected.

Obviously, there is much more to Asset Protection than what is mentioned here. With these three columns you would typically use a combination of the various firewalls; Debt-shields, limited Liability Companies, Limited Partnerships, Domestic Trusts, Offshore Entities, Corporations, Co-Ownerships, and Federal and State Exemptions.

By using one or a combination of these firewalls it is possible to more than adequately protect your assets, stave off entitlement bearing people and entities,have choice as to how the bulk of your wealth is spent, and completely win The War On Wealth.

Other Posts In This Series are:

 

Leon C. Williams
Financial Strategist
LUCA Financial Services
leon@lucafinancial.com
blog: http://leonsblog.leonwilliams.me
Online Business Card: http://bizcard.leonwilliams.me

Other Articles and Blogs To Read Are:

http://www.assetprotection101.com/
http://www.assetprotectionplanners.com/strategies
http://www.diyassetprotection.com/
http://www.trustmakers.com/

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Filed under: estate planning • Financial Services • Trusts • War On Wealth • WOW Asset Protection • WOW Empowered Wealth • WOW Wealth Preservation

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