Asset Planning Tips
Asset protection does not require that you notify beneficiaries or most outsiders.?? You can keep a low profile, reduce exposure from computer records, reduce credit information and risks, eliminate publicity, have private investing.? You can maintain separation of assets, investors, current and former family members, associates, risks, and taxes.?
Steps To Financial Privacy
Never release your social security number unless it is absolutely necessary.
Use a trust, LLC, corporation, or another entity for major transactions.
Steps For Extra Privacy
Do NOT use your personal name on:
- Post office box or Mailbox Service
- Business Transactions
- Real estate
- Bank Accounts
- Use wireless computer and phone accounts
Anyone May Discover Unprotected Assets
With the use of computers and modern investigation techniques, it is not difficult for creditors to locate assets, including those that have been kept overseas.
Banks, insurance companies, neighbors, employers, tax authorities, lenders, organizations you subscribe to, memberships, wedding registry, clubs, schools, utility companies, delivery services, or others may disclose your personal information.
Spouses, friends, children, and associates can be forced to disclose your finances to any court or investigator, whether or not they are involved in the litigation.
Do not rely on secrecy or concealment to prevent seekers from learning about your assets. You can be forced to testify under oath, and if you attempt to deny or conceal ownership you will be committing the crime of perjury.
Creditors that are entitled to discovery of the assets of a debtor have great discretion in their examination and procedures.? You are only required to disclose your assets when a creditor (a) obtains a judgment against you, (b) when you are sued for punitive damages and the assets are relevant to the award, and (c) when you are involved in litigation involving the fraudulent conveyance and the assets are relevant to the discovery.
It is not necessary to use offshore trusts or do offshore investing.? If you must go offshore, ensure that you are in compliance with all laws and reporting requirements.
Only disclose what is necessary to financial institutions.
Maximize transactions that are not reported under your name.
Use financial professionals that will keep your financial information confidential.
Always have your accountant work through your lawyer to insure confidentiality.
Avoid writing checks, credit cards, debit cards, safe deposit boxes, storage units.
Arrange investments so that you can provide minimal financial information.
Uniform Fraudulent Transfer Act
The Uniform Fraudulent Transfer Act was adopted for all transfers and obligations that prevent? placing assets beyond the reach of existing creditors.? The court will use all relevant evidence to determine if there has been a fraudulent transfer including:
NOTE: There are both civil and criminal penalties against a debtor who fraudulently moves property with the intent to defraud and can be considered a crime and a felony.
- "the debtor had removed or concealed assets,"
- "the transfer was to an insider"
- "the debtor had retained possession or control of the property transferred,"
- "the transfer or obligation was disclosed or concealed,"
- "the debtor was sued or threatened with suit before the transfer was made or the obligation incurred,"
- "the transfer was of substantially all the debtor?s assets,"
- "the debtor has absconded,"
- "the value of consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred,"
- "the debtor was insolvent or became insolvent shortly after the transfer was made or the obligation incurred,"
- "the transfer had occurred shortly before or shortly after a substantial debt was incurred," or
- "the debtor had transferred the essential assets of the business to a lien or who had transferred the assets to an insider of the debtor."