The Protection Group LLC


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Protecting Your Family Assets


The Myths:

We're going to talk about asset protection so let's start with Rule #1 that every attorney knows:

If you own or control an asset, it can be taken from you.


Now, let's talk about various ways that people try to protect their assets.  


LLC. You own and control your LLC and, therefore, any assets that the LLC contains.  Refer back to Rule #1.  LLCs have a purpose and that purpose is typically to allow you to run a business.  A properly set up LLC will allow you to run your business as you see fit.  Many advisers will tell you that an LLC is "bullet-proof" because in some states the court will not issue a standard creditor judgment but a "charging order" instead.  Now, let's look at the rest of the story; if your LLC has scheduled disbursements the court can order those to be paid to the creditor, otherwise the creditor may not be able to invade the LLC and directly take assets.  But, neither can you.  Some "advisers" will tell you that you can borrow or transfer funds from your LLC to another, even with a judgment in place.  The court can imprison you for such actions.  I guess you can always hope the creditor forgets to renew the judgment every ten years.      

CORPORATION.  You own and control the corporation and, therefore, any assets that the corporation contains.  Refer back to Rule #1.  You may be familiar with the term "Piercing the Corporate Veil".  It is so common now in creditor lawsuits that they include your corporation (asset) in the same lawsuit they file against you.   


SUBCHAPTER S CORPORATION.  It's basically a proprietorship.  Refer back to Rule #1.


LIMITED PARTNERSHIPS (Including Family Partnerships).  The part that you have ownership of is your asset.  Refer to Rule #1.  


REVOCABLE TRUSTS, BETTER KNOWN AS LIVING TRUSTS:  Many people have been led to believe that if it says "Trust" on the documents then they have asset protection.  The IRS and our legal system disagree.      


Bottom line; if you own or control an asset, it can be taken from you.

The Facts:

According to some of the best legal minds in our country, the best method of both asset management and asset protection is an irrevocable trust. It is the preferred method of asset protection of the super wealthy in our country and has been for well over a century.  Why is this a better way to protect your assets? Because you transfer ownership of your assets to your trust(s) and you own nothing.  You choose two trustees to oversee and protect the assets of the trust and best interests of the beneficiaries. You also appoint a protector who watches out for your interests as the settlors/creators of the trust. You have the power to replace both the Protector and Trustees.  An extremely important thing to remember about irrevocable trust protection is that "People die, trusts don’t." These trusts are meant to be generational and will last until some future generation of your successor beneficiaries may decide to end them.  


Now let's revisit the LLC.  A business owner who has been made aware of proper business structuring can use an LLC to manage and operate their business as usual; however, they have the LLC owned by a trust.  In addition, they can have the assets that are used in the business owned by other trusts and have the LLC lease those assets to be used in the business.  A judgment against the LLC/business would be disappointing for the creditor because the LLC has no assets.  Another option for a business owner would be to have their business, which might already be an LLC, assigned to a trust.  It's as simple as assigning the member interest to the trust.  This allows the business the freedom to operate as usual including having its own EIN and bank business account.  


A corporation could be handled in the same manner and the same with a sub S corporation.  And trusts are typically more advantageous for a family than any sort of family partnerships.  The trust would offer asset protection for all involved with long term protection for future generations.  


Next, let's address Revocable/Living Trusts.  The IRS and our legal system consider them to be a dba or a rich man's toy.  Revocable/Living Trust activity, for tax purposes, is filed as part of your personal tax returns because it is not really considered as a separate entity.  If you can be the grantor/settlor/beneficiary and also a trustee then you do not have asset protection.  Living trusts exist for the purpose of allowing your estate to bypass probate (in most cases) and proceed directly to applicable estate taxes.  At no time during your life, or after your passing, does a living trust provide asset protection.  


Imagine yourself standing in a room next to a large box that represents a trust.  It contains all your assets.  If you wanted $50,000 and reached into the box to get it that means a creditor could do the same.  That's a Revocable or Living Trust.  But if there was a person standing between you and the box of assets and you asked them to reach into the box and hand you the $50,000 then that means a creditor couldn't reach in.  That person between you and the assets is a trustee.  


The Process:

The Protection Group LLC can show you how to segregate your assets; each major asset into its own irrevocable trust.  They offer a package of ten trusts that are complex, irrevocable, amendable (by the Memorandum of Trust), automatically renewable (to comply with contract laws of various states), and contractual.  Live like the super wealthy.  Enjoy the best asset protection concept that can be employed in this country.  The Protection Group LLC retains a law firm to ensure that the documents provided are in compliance with the Uniform Trust Code.  We also offer the best customer service in the industry.  The trust package takes advantage of the consumer friendly trust laws of the state of Wyoming and incorporates some of the advantages of offshore trust language of the Eastern Caribbean country of Nevis which is considered by most trust specialists as the ultimate in international trust protection.

The Protection Group LLC holds Tuesday and Thursday evening presentation calls that offer a complete explanation of asset protection, trusts in general and their trusts in particular.  They include a Q&A session moderated by the presenter, a compensated spokesman, and a trust attorney, also a compensated spokesman.  This will help provide information that will make it easier for you to make an informed decision that can have a life-changing effect on your family's financial future.  The education you will receive over one or more calls will not only give you quite an education about the trust world but it may just challenge some decisions you have already made without knowing the whole story about how asset protection and trusts really work.            



(The calls start promptly at 8:30)

(641) 715-3605
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