Home » Finance » Personal Finance

Protect Your Assets Offshore Legally

May 9, 2008
The term "asset protection" was first used within the wealth management and estate planning community. Protecting your assets offshore simply involves creating one or more offshore companies in combination with foundations or trusts to limit the ability for creditors to attack you and seize your assets.

The process of protecting your assets, including the use of offshore asset protection works by modifying the definition of the asset from an asset that can be easily taken and sold, to a different asset that the creditor does not legally have the right to take and sell.

They are simply taking advantage of the limited liability protections because one is only liable for up to the amount that they have invested in that entity. When someone with debt is challenged in court, they must have a solid case, based on evidence that supports any inquiries as to whether or not assets were transferred fraudulently.

Offshore asset protection is often viewed as the debtor challenging the jurisdiction of U.S. law and it is often looked upon negatively by the U.S. court system.

The attorneys, bankers and foreign countries convince frightened individuals to spend untold amounts of money creating these trusts and companies in their jurisdictions because they have better debtor laws than the U.S.

However, even with these debt friendly laws people are not always safe from their creditors, because foreign laws are set up to protect the debtors because they overrule trust law. These laws can't hold up to public policy and when challenged in court no offshore asset protection trusts has ever prevented a U.S. court from ruling against the assets or the person who is in debt. Often the person is given a court order to return the assets to this jurisdiction or face charges of contempt of court.

Many people also believe that a foreign country used for asset protection will not enforce a U.S. judgment against them. However, this is not an entirely accurate argument. Often it comes down to the fact of whether a U.S. court has jurisdiction over the individual debtor, because they are a resident of the country. This voids the assets transferred to the offshore asset protection entity, because under state and federal law it is generally illegal to transfer assets to the offshore asset protection entity barring few exceptions anyway. The ins and outs of these rules are very complicated.
About the Author
To learn more about protecting your assets offshore or protecting your assets in Panama please visit the author's website.
Rating:
Please Rate:
(Average: Not rated)
Views: 163
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources