There is a lot of confusion about this subject. First let me define domestic asset protection. Domestic AP is any form of protection that relies on the laws of the United States for its ultimate security. This begins with the simple bankruptcy exemptions which are available to everyone and culminates with a domestic Domestic Asset Protection Trust, now available by statute in 13 U.S. states such as Delaware, Nevada and Alaska.
If you have been researching offshore asset protection, you’ve likely come across companies that offer various forms or domestic asset protection, often using the most well known domestic asset protection tool, the Family Limited Partnership, which is both popular and effective. And of course, nowadays you will see plenty about the new domestic asset protection trusts, which are designed to imitate the stronger and more effective offshore jurisdictions and attract business to the states that have enacted asset protection legislation.
And as far as that goes, a good onshore asset protection plan is a great start. They are often simple to set up, easy to implement and sometimes less expensive (although not always) than a full blown international plan. But, as with most things, that simplicity comes with a cost. Domestic asset protection is, by definition, never going to be as effective as a solid offshore plan based in an asset protection trust. For complete foolproof asset protection, it’s required that your domestic asset protection plan be accompanied by a foreign component which is set up in a jurisdiction out of the United States.
Not All Asset Protection Services Offer Offshore Protection
p>Many local asset protection advisers who urge you to go for fully domestic plan are most often fully aware that this protection is not as effective, but may simply not have the resources, the expertise or the know-how to set up an offshore trust. An offshore asset protection program is simply more complicated and complex to set up. Many asset protection advisers don’t have access to the tools needed to set up an offshore plan, so they promote domestic plans, because it’s the only thing they have to sell, or they feel it is easier to convince a potential client without adding the complexity of the offshore component. Unfortunately, what they have to sell may not be your best option, either in effectiveness or cost.
For Bulletproof Protection Go Offshore
It’s quite simple actually. When your asset protection program comes under the jurisdiction of the United States, any legal action by creditors against you and within US jurisdiction, could apply to your asset protection planning if a judge determines it to be. In contrast, an asset protection trust in Cook Islands or one of the other solid asset protection jurisdictions, is immune to any court order inside the United States.
Feel free to contact our office now, or at any time during this course to get an analysis with our in-house Asset Protection Attorney or Analyst, please contact Kitty Lucarini at 1 (800) 231-7112 to schedule the phone appointment.