

PAUL C. WRIGHT, ESQ
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NEWSLETTER
Our Newsletter is sent out monthly and includes developments in immigration, business, and international law. To subscribe, send an email to: pcwlaw@pangeaspage.com
Newsletter for October 26, 2008
THE GROWING NEED FOR ASSET
PROTECTION
Foreign Asset Protection Trusts
As the global financial horizon darkens
professionals and business people must face one fact; economic slowdowns
usually mean more lawsuits. Think about it, the easiest way to make
money in faltering economic environment is to take it from someone else’s
pocket. And your soon-to-be plaintiff will have plenty of willing
accomplices, at a 33 percent fee, in the nation’s army of contingent fee
lawyers. So how does a hardworking professional or entrepreneur
protect what he’s earned? Asset protection trusts
Of course there have been recent attacks on the
concept of asset protection, mostly from the IRS and Bankruptcy but astute
practitioners can learn how to avoid making the same mistakes. You’ll
also have to learn to spot your share of shady characters who will take you
for a ride, if you let them. But even in the worst cases one thing is
clear, the courts have accepted that asset protection, or wealth
preservation, is a legitimate business goal.
First we should be clear, offshore trusts do not
result in tax savings. In fact, recent changes by the IRS require that
assets in an offshore trust be declared annually. IRS rules also make
it plain that an offshore asset protection trust is tax neutral; meaning
that there is no tax advantage to forming an offshore asset protection
trust. So why do it?
Asset protection trusts offer protection from
illegitimate malpractice or negligence suits, which are particularly
nettlesome for the modern earner. All too often a diligent businessman
or professional faces extortion from greedy lawyers and their clients who
often file unwarranted claims for staggering amounts of money. Often
the business will settle just to avoid years of costly litigation and
unnecessary disruption. An offshore trust, properly structured, can
effectively remove assets from the settlor’s balance sheet and protect them
from groundless lawsuits, without creating negative tax consequences.
Even more, with your prior approval offshore trust assets can e
invested in funds that are not available in the
Offshore Asset Protection Trusts work because no
country in the world automatically recognizes
Of course there are other considerations for the
careful businessman. There are far too many con artists operating as
“asset protections experts” hawking plans that are useless at best and at
worst will land you in lockup for 3 to 5. But don’t allow the crooks
to prevent you from taking action to protect your family. For a
careful assessment of your risk of lawsuit and your financial and legal
options contact the Offices of Paul C. Wright for more information.
©2007-2008 Paul C. Wright All Rights Reserved
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