Blog For Noob Random thought of a Noob Blogger
Asset protection is a fundamental way to reduce the inherent risks associated with ownership of assets. Humans make mistakes and, unfortunately, we’re pretty fragile beings. Here are some of the more commonly misunderstood issues regarding the practice of asset protection.
1. False: I Will Lose Control of My Assets
Just because the asset’s ownership is moved to a separate company or some other protective arrangement doesn’t mean you will lose control of that asset at all. In fact, you’ll be happy it’s protected from lawsuits or liens that could be levied against you. Even though you may not have direct ownership, you’ll still maintain control.
2. False: Moving Assets Offshore Is Ineffective
Assets on American soil are subject to American courts. The reality is that if you end up in some court battle, whether it is related to a particular asset or not, all of your assets could be subject to seizure if you fail to place them in proper protection beforehand. A judge could order you to freeze the movement of assets and money and you’d have very little recourse.
3. False: The IRS Will Hound Me if They Find Out
The IRS is not going to notice you when you follow Virginia asset protection laws by hiring a lawyer to assist you. The IRS does not see red flags when you move assets unless you are under some kind of court order to leave assets in place. For wealthy people, asset protection is pretty much a requirement and is perfectly fine if done in compliance with the law.
4. False: I Can Protect Assets After a Lawsuit
Once a claim against you for damages is submitted to a court anywhere in America, you no longer have the ability to move, sell, or otherwise change the ownership of assets. Cash needs to remain parked in bank accounts where they sat before the lawsuit. Be prepared before disaster strikes, not after.
