The United States of America has always been an attractive country for foreign asset protection, but picking the correct state to provide this service is important if owners want to reap the full benefits. Since legislation differs from state to state, it is important to conduct a needs analysis first to determine which is the best fit state for your requirements. The state of Wyoming has remained the general leader in the country as the jurisdiction has the most favorable asset protection laws for businesses.
Whilst some people might be tempted to protect their assets in less than legal ways, the IRS warns against the non disclosure of assets in an attempt to avoid taxation. According to the latest services latest publication, 1327 investigations have been initiated, with 850 prosecutions recommended and 633 offended sentenced. Being a part of these statistics results in a greater loss than the savings that an offender could have made and along with the financial loss, the reputational loss is just as difficult to combat.
The controversy around asset protection
Whilst there are those that believe that the full wrath of the law should come down upon others who have a moral obligation towards paying debts that are ordered by the court. That debtors should be stripped of everything that they own and left with next to nothing if it means that their monetary dues are paid, no matter the reason or consequence.
However, when the facts are examined and the realization of how many rulings are made based on the slightest majority vote in a 9-member supreme court. Then it can be seen that the ruling could have just as well gone in favor of the debtor if there had to be a different judge or a if it were a different day, as these rulings are made by human beings who face external influences that no matter how much they try, it is almost impossible to be 100% objective.
Then maybe their views would change, because if there is a way to protect yourself, for you to allow for added assurance that you will not be thrown out on the streets and have all of your assets ripped away from you, if there is a legal and government allowed way, it only makes sense to take this route and ensure your future is secured.
With the market becoming saturated with competitors, companies have become ruthless in an attempt to remain in business, fible lawsuits are becoming more common in an attempt to squish competitors, with big companies willing to take a loss with lawsuit costs just to run a competitor out of business. Between opportunistic competitors and patent trolls, who are vultures just waiting to swoop in and sue companies just to make an easy dollar, it is imperative that businesses are covered with the correct asset protection.
Why Offshore Accounts Are Not The Answer
When you trust your money with a foreign bank, you are automatically giving them full ownership of your money. The money then gets compounded tax-free and creditors are unable to trace your finances. In theory this should work, however, you run the common risk of your money disappearing altogether or the financial institution completely denies that the money was yours to begin with. You are then left without recourse as reporting the matter to the authorities is the equivalent of admitting that you have committed tax evasion and can result in both fines and jail-time, as well as the financial loss of your “investment”. You are also at risk of being blackmailed by the person who has taken your money.
These scenarios happen more often than one might think, and in an attempt to protect your assets you could end up losing it all and more as well as your reputation. This is why it makes more sense to follow the legal route and place your assets in a Wyoming asset protection trust instead of unreputable overseas trusts. Wyoming law allows for privacy protection and does not require the names of those involved to be added to a public database, so this still provides anonymity whilst staying within the law. Read for more about trusts, we recommend this article about asset protection by Wyoming Trust and LLC Attorney.
Wyoming Trusts for Asset Protection
Wyoming is in fact one of the only states in America to enact statutes that provide asset protection benefits via “self-settled trusts”, which allows a person to be both beneficiary and creator of a trust. This protects all parties involved from the claims of creditors and will ensure that wealth and assets are passed on to those that it has been intended for.
The state also allows the creation of a purpose trust, these differ from traditional trusts in that they are created for a specific goal that one might have in mind as opposed to just benefiting a group of named members. These trusts allow you to ensure that money is spent where you intended, be it on the education of your children or the maintenance of the family home.
Asset protection trusts in Wyoming allows you to maintain a legacy and protects the generations of your family to come. Most US states only allow trusts to exist for a limited number of years, in Wyoming however a trust can last for around 1,000 years which provides better asset protection as well as lets family members reap the benefits of generation skipping estate tax.
Everyone needs asset protection, for the very same reason that we have home and health insurance. Whilst it may be tempting to dive into investing in an offshore bank account, you run the very likely risk of being stranded to sink as a result of thief and blackmail. By creating a trust in Wyoming, not only are your assets protected under complete anonymity, your protection is within the limits of the law and the courts can provide backup should the need arise for you to call on their protection.