A Professional Law Corporation
21031 Ventura Boulevard, Suite 523
Woodland Hills, CA 91364
Toll Free: 888.TRUST4U
more information about
Life & Estate Planning, visit www.trust4u.com.
Because of the litigation
explosion in the U.S. and elsewhere, professionals and small business owners are
forced to focus on ways to protect their savings, investments and other
accumulated assets that may be attractive targets for hungry trial lawyers.
year in the US, approximately 45,000 new lawyers pass the bar.
are approximately 19 million new lawsuits filed each year.
in every 3 businesses is sued each year.
with retirement savings are visible targets for frivolous lawsuits
directed at "deep pocket" defendants.
owners face a constant threat of lawsuits from employees, lenders,
customers, suppliers, landlords, competitors and partners.
owners are endangered by potential lawsuits from tenants, visitors,
lenders and buyers.
physicians, CPA's, engineers, real estate brokers, contractors and all
other professionals are concerned with litigation from malpractice claims
and business disputes.
lawsuit, justified or not, can wipe out a lifetime's worth of work and
In the U.S. Legal System, the deck is often stacked in favor of plaintiffs
and against defendants. Because this observation encourages the filing of
spurious lawsuits, the average business owner or professional may be sued
several times during his or her lifetime, thereby facing the possibility of
being on the receiving end of a ruinous judgment. Failure to plan for such a
situation can result in the instant loss of a lifetime's accumulated wealth.
Once a lawsuit has been filed, or one is anticipated, the U.S. Legal System
will not allow assets to be moved.
ACT BEFORE THAT THREAT APPEARS!
What can you do?
The Limited Liability Company
("LLC") is a fairly new type of entity. It has been around only
about ten years in most states.
Here at the Law Offices of Jay
A. Rose, we use the "Family LLC" as the first line of defense. This special LLC allows only members of the family to own assets in the LLC. By placing the assets in the LLC, judgment creditors are precluded in most cases
from taking the actual assets. They are limited by what is known as a
"charging order" to distributions of the Family LLC, if there are any.
Domestic Asset Protection
Trusts are trusts that are created in certain states of the USA that permit you
to be the beneficiary of your own trust. You place your assets irrevocably
into the trust and the trustee then makes distributions to you. These are
recommended only in limited cases.
For those who want the ultimate
protection available, Offshore Asset Protection Trusts can be used to provide a
high degree of asset protection. Common offshore jurisdictions for these
types of trusts are:
Bahamas • Bermuda • Turks and Calicos Islands •
• Cayman Islands • Cook Islands • Gibraltar • Isle of Man •
These jurisdictions provide a
legal structure favoring those who set up trusts in their countries.
In establishing a foreign asset
protection trust, your assets are transferred to the trust that has only foreign
trustees (with no offices or agents in the United States), which manages and
administers the trust property from the offshore jurisdiction. When your
creditors begin looking for your assets they will have a very difficult time
finding them because of the high degree of privacy these trusts ensure. Even if they discover the offshore trust, they will have to deal with the
Creditors quickly find that
they have no power over the foreign trustee, since the foreign trustees do not
respect (are not obligated to honor) judgments from the United States.
Commonly, judgment creditors
are quick to then seek a fast and cheap settlement of their dispute. Some
will not even bother to file the lawsuit since there are so many barriers to