I get asked this a lot…. Why am I so concerned about asset protection. Well there are probably a few thousand reasons, but these are the main ones. (For the record I am a 100% independent financial consultant specializing in asset protection and privacy)
#1 – With the current US banking/financial regulations you have ZERO privacy. Anyone running a basic search can find your savings account, checking account, CD’s, brokerage account, IRA account, credit cards, home loan, car loan, etc… all with balances. You are basically an open book. Why is this bad? For starters, the US is the most litigious society in the world. What if someone slips and bangs their hip on your driveway? A quick search conducted by any lawyer on your address will turn up your info. From there its about 60 seconds to find out your net worth. If you have at least $5k in the bank, you’re a target. If you get served with legal papers, you have no choice but to hire your own lawyer to respond the suit, or you have to settle with the guy who’s coming after you for however much you can agree upon. (I have many lawyer friends, and it really is that easy to get your info and file suit)
However, what if the search on your home didn’t turn up to you? Perhaps it lead to a corporation or LLC that appears to have no bank accounts, no US based address, and no officers that reside in the USA? Well to any lawyer looking at potential cases, that one gets skipped.
#2 – US banks are not concerned the least with your privacy or rights. They will turn over all records of your activity and your money at the request of any government official. But the law requires a court order right??? Tell that to the thousands of people who have had their US bank accounts tagged, frozen, and drained by the IRS, without a court order. I personally know several people who have informed their bank that the IRS is required to have a court order to levy funds. The banks response? In most cases they simply state their policy is to comply with the IRS, and that’s all. It’s not that the law requires them to, just that they choose to. They choose to hand over your money to an agency that does not have the legal right to take it. And you keep your money in these institutions why?
Wouldn’t it be nice if a search for all bank/brokerage accounts in your name returned nothing?
#3 Do you drive in the US? Is the car in your name? All it takes is a 5 mph tap on the bumper to get served a 6 figure lawsuit. However any lawyer will conduct a check first to see if you’re worth the trouble. No bank accounts, no easily accessible assets, no paper net worth… no trouble.
#4 – Estate taxes – Do you plan on leaving anything for your loved ones? Maybe a spouse, child, grand child, or charity? Every cent you leave will be reduced by at LEAST 40%. Estate taxes, gift taxes, probate costs, attorneys etc… These can whittle a million dollar estate down to pennies in no time. Whats the solution? What if “you” dont own anything when it’s your time to go. Your house, car, finances, etc… they don’t need to be yours in order for you to control them. Remember a corporation never dies, so any assets held by one never change ownership, and as a result never get taxed for passing from one generation to the next.
#5 – ID theft -As a personal victim of this I can testify to the damage it causes. With your info so easily accessible, how tough do you think it is for someone to take over your accounts? I had someone with my name, my birth date, my SS #, and a different photo that caused havoc on my accounts. They even had an official CA drivers license with my info and their photo. It took me years to clean up, and cost me my credit history.
What if an ID thief found out your name/address and set out to take your identity? How vulnerable would you be? Is your home in your name? Your car? All your personal accounts? If so you’re a sitting duck…
I chose to protect myself and my assets, from all prying eyes and hands. If you value what’s yours I can only suggest you do the same.
For specific questions/inquiries please email me at [tomothy at hushmail dot com]
Tags: Asset Protection, banking, death tax, estate tax, Offshore Banking, Privacy Protection, Private Banking, probate, Wills
