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International consultancy |
WHAT IS ASSET PROTECTION PLANNING? Asset protection planning involves figuring out and applying a lawful series of techniques that protect your assets from claims of future creditors. The techniques are designed to deter potential creditors from going after you, and frustrate them if they do, generally by making it difficult or impossible for future creditors to grab hold of your assets or collect judgements against you. In cases where significant sums are involved, asset protection planning often includes setting up a series of trusts, partnerships and/or off-shore entities to hold legal title to your assets. A future creditor who recognises how difficult it would be to collect on any judgement it may win, might decide it makes little sense to pursue a claim, or be willing to settle for pennies on the dollar. There is a very sharp dividing line between "legal" asset protection planning on the one hand, and actions to defraud creditors, which are criminal, on the other. We decide case to case if we can help you. SOME SIMPLE ASSET PROTECTION TECHNIQUES Many of the traditional forms of estate planning can be used effectively as asset protection techniques. Gifts of property not intended to defraud creditors remove the assets from your estate. If your child owns the farm, boat, holiday home, it is no longer at risk from your creditors - although your son's creditors and his spouse may pose a risk. But there are more “solutions”. If you are "wealthy", "comfortable" or even if you just have some positive net worth, most likely you are concerned about keeping what you have, and preventing others from taking it. This concern is real, as there are people who will take advantage of any opportunity to take what you have. We provide several solutions for Asset management service: * Real estate. * Company shares. * Boat. * Personal property. WHAT TECHNIQUES CAN I USE WITH MY BUSINESS and BUSINESS PROPERTY? The legal structure of your “technique” is extremely important. Country and State Laws enables you to create a legal entity - a separate "identity" from your own person - under which you can transact business, without the risk of exposing your assets to any personal liability that might arise out of your business affairs. One technique is our "Company" Nominee services. QommuniQa offers a unique service to provide a substantial layer of privacy and protection called the “Nominee Service.” The names and addresses of the shareholders of a corporation are required - in most jurisdictions or countries - to be listed in the public records. Many of our clients however want/need privacy and do not want their personal names and addresses to be publicly listed. QommuniQa provides several levels of nominee services. Our nominee service however leaves you in control. ALWAYS. Than there is the Irrevocable and Revocable Trusts An irrevocable trust transfers the trust assets outside your ownership, and the assets are immune from lawsuits and creditors’ claims against you. Revocable trusts do not have these advantages, although they have other benefits. Trusts are not subject to the same stringent rules regarding wills and are thus less likely to be successfully contested after your death. Irrevocable Trusts In general, an irrevocable trust is advisable when your primary concern is to reduce your estate tax liability. But transferring assets into an irrevocable trust is a big step that should not be taken lightly. Why? Irrevocable trusts significantly restrain your powers and freedom of action and therefore are considered primarily in the context of estate taxes. An irrevocable trust is a completed gift at the time of the property’s transfer into the trust, and gift taxes may therefore be assessed at the time of the transfer. You retain no reversionary interest and little power to control the trust. The best property to place in an irrevocable trust is property that is likely to appreciate in value, since any future appreciation in value will not be subject to either gift or estate taxes. This is one of the major advantages of irrevocable trusts. Revocable Trusts A revocable trust, on the other hand, offers no tax advantages and therefore should be considered for reasons other than reducing the estate tax bite. There are a variety of possible benefits to establishing a revocable trust. For one, assets placed in a revocable trust will not be subject to the delays and inconvenience caused by probate. This assures the payment to beneficiaries of proceeds from life insurance, pension, and profit-sharing plans, and other benefit plans without going through probate. A revocable trust also reduces vulnerability to postdeath contest among heirs and reduces access of creditors and claimants to the decedent’s estate. The decedent’s financial affairs remain private, as the trust plan is not subject to public inspection. Competent management by professional trustees, if desired, assures that the grantor’s wishes will be adhered to. At times, grantors have created a revocable trust as a “test run” for creating an irrevocable trust, to measure both the competence of the chosen trustees and the viability of the trust. And there is the PANAMA foundation, The Assets placed inside a Panamana foundation are sole and separate property and cannot be seized to satisfy any personal judgements or obligations of the founder or the foundation’s beneficiaries. Assets inside a Panamana foundation cannot be attached in order to satisfy any claims against the founder, including judgements for divorce, lawsuit and other liabilities. While the foundation cannot technically engage in business activities, it can own the shares of a company engaged in business activities. It is also permissible for the foundation to engage in any activity, which will increase the value of assets. This means that a foundation can be the owner of bank accounts, securities brokerage accounts and real estate holdings. Since there are no shares of ownership in a Panamana foundation, the founder does not own the foundation and as such gains important tax reporting and protection benefits with this. In reality, there are quite a number of practical uses and strategies for the Panamana Foundation. As an asset protection vehicle, there is probably no better entity in any jurisdiction at the present time for this purpose. For more information on how to use our Nominee services, our Trust services and a Panamana foundation as part of an overall asset protection strategy, please contact our office. Please keep in mind that: Transferring property out of your name may also result in a loss of control. Some people will trade a lower degree of control for the benefits obtained. The amount of control that you want to have over your property will help you to determine what asset protection technique should be used. As a general rule, the less control you have over your assets the greater the degree of your asset protection. |