My blog just got spammed by some company trying to get people to invest in a corporation based on some Caribbean island. The spam came across as an advertisement for “asset protection.” I deleted the comment and will not be posting it on this site! The spammer was trying to comment to my post Asset Protection- “It’s As Easy As 1 – 2 – 3!”
So, I need a Caribbean trust or corporation to protect my assets?
Asset protection is the lawful use of entities, contracts, business practices and other legal structures that are recognized and permitted under existing law. Everything you need to protect your personal and business assets can be found right in your home state. You do not need to go off-shore to protect your assets. In fact, going off-shore raises another type of risk to your assets and can, therefore, be self-defeating.
Asset protection is NOT trying to hide assets in a Caribbean-based trust or corporation. Nor do you need a Delaware corporation or a Nevada corporation, unless you live or operate your business in those states. Nor do you lawfully protect assets by trying to hide them, by committing crimes or by engaging into fraudulent transfers.
The law provides ways to protect your assets! You’ve just got to understand what your risks are and what lawful means are available to address those risks. It’s really not that difficult. And there is no trickery involved. Trickery usually leads to other problems.
Do you know what a “legal witch doctor” is? It’s a term I coined years ago to describe people who talk about the law and who practice law without a license but with a particular financial motive impacting their advice. If a legal witch doctor tells you that off-shore trusts are the key to asset protection, you can bet that off-shore trusts are being sold to you.
Buyer beware! Avoid legal witch doctors. Go see your lawyer.