Asset Protection relies upon the strength of its components in providing result when defending your property from unscrupulous plaintiffs and financial predators.
Using multiple components of our plan together maximizes the power of your planning. It is this multi-pronged or “layered” approach that optimizes your ability to preserve wealth. Together, these legal components are designed to:
- Protect your accumulated wealth, including liquid savings and investments.
- Protect your personal residence.
- Protect your real estate investments including office buildings or rental property.
- Protect employers from the increasing danger of employee lawsuits.
- Create a strong deterrent to would-be plaintiffs by removing financial incentives to sue.
- And when litigation becomes inevitable, leverage a favorable settlement by shifting the balance of power from the plaintiff to you.
The Bridge Trust® (“BT”)
The Bridge Trust® combines the strengths of an offshore trust with the simplicity of a domestic asset protection trust (“DAPT”).
The Bridge Trust is an Asset Protection Trust registered offshore but domesticated (Domestic Asset Protection Trust) for tax and administrative purposes. This means that there are no complicated foreign filing requirements or IRS forms.
If a legal crisis occurs, the Trust and accompanying assets “cross the bridge” to the offshore jurisdiction, beyond U.S. court authority – for ultimate peace of mind.
Only when assets are seriously threatened do the triggering provisions of the trust activate to the Cook Islands.
The Bridge Trust® was created by one of the nation’s most experienced asset protection law firms, with whom we’ve partnered with, to make this available to our clients. We consider this strategy to be the key to an effective and sustainable asset protection plan.
Asset Management Limited Partnership™ (“AMLP”)
The Asset Management Limited Partnership™ is an Arizona Limited Partnership that forms the nucleus of a wealth preservation plan as a “holding company” for client assets.
The AMLP centralizes the management of liquid assets – cash, savings, investments and securities – while placing a legal barrier around them. The AMLP can also own other Page 9 of 9 assets indirectly by owning Limited Liability Companies (“LLCs”) or other corporate investments.
The AMLP creates legal defenses that severely limit a creditor’s ability to touch assets through “charging-order” protection laws. These laws prevent a judgment-creditor from directly accessing assets inside, and only allow the creditor to claim distributions once they exit the partnership.
The judgment creditor has no control over how, if, or when distributions are made, leaving creditors with virtually no power or leverage. This leaves a creditor with a limited and uncertain remedy, providing our clients with expanded negotiating leverage.
Limited Liability Company (“LLC”)
The Limited Liability Companys primary role is to compartmentalize “risky” assets that should not be directly mixed with safe assets held by the AMLP. Real estate, rental properties, boats, and airplanes are all best held within LLCs to insulate owners and other valuable assets from these risk-generating assets.
The LLC may be owned 100% by the client’s AMLP, making the single-member (owner) LLC a disregarded tax entity that does not require its own tax return.