Key Concepts and Interesting Facts
Some simple concepts:
* Nobody can take your assets away without first winning a lawsuit and obtaining a judgment. Except in the rarest of situations (or in the case of the IRS or in certain divorce situations), pre-judgment attachment is not available in the USA. You always have several years warning.
* Asset protection strategies can be best implemented when the financial seas are calm. Once attacks have mounted, it is sometimes too late to do any serious protecting because of the fraudulent conveyancing laws. You work hard to make your money and we believe that you should take ten percent of this effort and direct it toward protecting your nest egg.
* What judgment creditors don't know about can't be taken. In other words, stealth works. Never volunteer anything.
* Judgment creditors can only take what you own. If it is not yours, they can't take it.
* No country in the world automatically will recognize judgments from a US court. To register and enforce a US judgment abroad, the case must first be relitigated in the foreign country (not true with respect to certain arbitration awards which are sometimes recognized by virtue of a treaty). No country anywhere in the world recognizes tax oriented judgments from the US. Most also refuse to recognize our tort, securities and antitrust judgments. They simply think our laws are stupid and unfair, and refuse to recognize judgments based upon nonsensical laws. This is one reason for asset protection trusts.
* Never trust anybody (especially a foreign trust company) with your money. All asset protection plans should be structured so that you never are vulnerable to any other person taking or dealing with your money without your consent.
* Divide and conquer. Never mix liability generating assets in the same entity (for example, you would never have two apartment houses owned by the same limited partnership).
* The United States is the only country in the world which permits contingent fee litigation. In all other countries it is unethical for an attorney to take a case on a contingent fee basis. In addition, in many countries the plaintiff must post cash with the court to handle the defendant's fees and costs if the plaintiff is unsuccessful.
