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Providing Affordable On-Shore Tax Advantaged Asset Protection
"Timing is everything!"
I often get asked the question, "What is the best way to protect assets?" And, if you have read any of this site, you will know the answer in most cases is an irrevocable, **Constitutional Pure Trust.
However, there's more to it than that. There's the issue of timing. For, it's not enough to simply have assets owned by a Trust. What's equally important is WHEN such ownership is arranged.
For example: If I open this morning's mail to discover a letter from a creditor who is threatening to sue me - then it's a little late to suddenly pass over the ownership of my house to a trust. A court would rule that I was engaging in a "fraudulent transfer", also known as a "fraudulent conveyence", i.e. - a transfer of assets with the intent to defraud a claimant. If this occurs any trust strategy would be worthless.
Or another example: If my wife/husband/partner says they are leaving me - then I've left my run too late, if I think I can protect any property I brought into the partnership at that stage.
All asset protection planning must take place BEFORE there is a visible threat to ones assets. And yet, most "asset protection" occurs at exactly this "wrong" time. Most people only think of asset protection when the knock comes at the door, so to speak.
Asset protection is like insurance. I won't be able to acquire fire insurance - AFTER my house has caught fire. I won't be able to acquire car theft insurance - AFTER my car has been stolen.
And it's the same with asset protection. I won't be able to protect my assets with a trust - AFTER a challenge to those assets is already underway.
It's one of our unfortunate "human" traits, in that we seek protection from a threat - AFTER the threat has appeared. So I shouldn't wait to start my asset protection planning until it's too late. If I have substantial assets - then I need protection. And the time to plan - is when I think there is no need to plan.
In other words - NOW.
** Some of the names also used for Pure Trusts are "Constitutional Pure Trust", "Pure Trust Organization", "PTO", "Common Law Trust", "Contract Trust", or "Constitutional Trust".
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