Asset Protection

[Metalblade]

What are you guys doing for asset protection once you've accumulated a little but of wealth? I know retirement plans and houses are protected in most states, but what do you with additional cash? I've been reading about irrevocable trusts but it seems that to use a trust, it has to be properly engineered, ie the settlor can't be the beneficiary, etc. Anyone have experience with using trusts as a means of asset protection? I would ideally like to retain some control over the trust and not get my wife involved in it.

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[periopdoc]

Divorce on the horizon? That may make protection a little more complicated. Whatever advice you get here, be sure and consult with an attorney.

- pod

 

[jwk]

Definitely need an attorney. As I recall, pension assets (yours or hers) are essentially a joint asset. The beneficiary is automatically assumed to be your spouse.

Also, if you're in a community property state, everything you accumulate after your marriage (except by inheritance) is essentially 50-50 whether you like it or not.

 

[Metalblade]

No, no worries of divorce. Just would like to leave her out in case things go sour down the line years from now. This is more for protecting assets from lawsuits, malpractice and others types of suits included.

I'm still looking for a good attorney. Meanwhile wanted to get some ideas here.

 

[deleted126335]

No, no worries of divorce. Just would like to leave her out in case things go sour down the line years from now. This is more for protecting assets from lawsuits, malpractice and others types of suits included.

I'm still looking for a good attorney. Meanwhile wanted to get some ideas here.

Lots of insurance (in excess of required minimums) is frequently the cheapest protection.

There is huge variation in state law on this issue. Go to an attorney who specializes in this.

 

[Oggg]

Are off shore accounts easy?

 

[deleted126335]

Easy: Yes.
Legal: Yes, if you fully disclose.
Effective: Maybe.
Expensive: Yes.

No asset protection strategy will protect future earned income from practicing medicine in the U.S. from being garnished. Also while your retirment plan assets are likely protected to $1 million, distributions from the plan are not protected. Defined Benefit plans are generally protected. So unless you are ready to quit working or don't mind have future wages garnished, things like family patnerships, off shore trusts are a waste of time. The simplest strategy is often the best:

1. Lots of insurance.
2. You don't own it. They can't take it. If in a strong marriage put assets in spouse's name.

Again first and foremost. Talk to an attorney specializing in asset protection in YOUR STATE.

 

[pgg]

Offshore asset protection from a spouse?

1) Install a floor safe when she's not looking.
2) Buy Krugerrands to put in the safe when she's not looking
3) Wait for her to divorce you
4) Carry your protected assets to your brand new studio apartment (gold's heavy, lift carefully)

More secure, more secret, (maybe) less illegal, (definitely) less expensive than offshore shenanigans. Compact portable wealth any pawn shop or coin store will give you 80% of spot for.

No, no worries of divorce.

Oh. Well, the above is still a better plan, I think. You didn't buy Krugerrands, you lost that money gambling.

 

[periopdoc]

Best asset protection... collectibles. You would be amazed how much wealth can be concealed in things like stamp and coin collections and guns and how easily they can be liquidated when needed (especially if you are willing to take a hit on them when you cash in).

- pod

 

[Coastie]

Best way to protect assets is to get a true professional wealth manager on your side.

Someone you can trust, who isn't selling "a product". Someone who approaches the field as a professional.

 

[periopdoc]

- pod

 

[Metalblade]

I've heard varying opinions about offshore trusts and accounts. I have read of incidents where offshore trusts haven't been honored by US courts. And the secrecy of offshore accounts doesn't exist anymore. Plus, I wouldn't feel comfortable stashing my wealth in a Caribbean Island or some tiny European country no one's heard of.

As Doze said, what you don't own, they can't take from you. That is the basis of putting money in a trust, which is a separate entity from yourself. It's easy if the beneficiary of the trust is your wife, meaning the money would come right back to you. I've heard of trusts designed where you are the beneficiary, but am still trying to find a good attorney for it. It seems like there is a lot of varying opinion among attorneys about this, because some of this hasn't been tried in courts.

But I agree, the first step is lots of insurance. Take out that umbrella if you haven't already.