And the final letter is “P” and that characteristic is protective legislation. this is achieved by using a country with laws in place that provide you with protection. now, you don’t always start in places that have protective legislation, reasons for this would be to save money or keep your asset protection structures very simple but when you are in trouble you will always want to be in one of the several jurisdictions that offer protective legislation. Okay so now that you know the STOP acronym,
The next piece is to understand the four components of a perfect asset protection plan:
1. The first one is an asset protection trust. Trusts are a key element and they are a business entity that takes assets off of your balance sheet, now a trust is a complex entity, like a person, but a very easy way to understand a trust is to think of it as a magic bucket. picture a bucket into which you put assets. The bucket expands to accommodate whatever you fill it with, once your assets are in that bucket, it becomes the new owner. but, because it is a bucket, it can’t make decisions for you, it’s a bucket after all. so you still control everything it holds, but technically you don’t own them anymore.
2. The next step is to take your bucket and put it in a country where you do not reside. let’s call this “going offshore.” this is where the real magic of that bucket comes in. Once that bucket is placed “offshore” in a different country, it can be protected by rules that cannot be broken much like force field or the law of gravity, even if you leave that bucket in the care of someone else, no one can reach into it and remove anything without some very specific things happening just like you removing the force field to allow them to reach into the bucket or you being attacked and having them move the entire bucket for you the second component of most asset protection plans is an LLC; it’s not always necessary but it’s the easiest way to stay in control when you have an offshore trust (bucket) sitting in the care of an off shore location. I’ll soon show you why in a moment.
3. The third component will be an offshore account…
4. The fourth component in some cases will be a domestic family loaded partnership. this is only necessary for US citizens. if you are not a US citizen, you will just do the first three. Now what do they look like? let’s start with the bucket, the “trust.” This is a typical trust: it has a settlor, that’s you. You will almost always have an offshore trust company; the location of this trust company will determine the laws that will apply to you. You’ll almost always have a protector, that can be you or an offshore lawyer or an offshore protector.
There are companies that specialize in this and I’m going to tell you who the best ones are very soon. There will be beneficiaries, and even classes of beneficiaries. this will always include you and any other people that you want to benefit but there is a variable in this arrangement.this trust company is not perfect. Although they are there to protect and guard your bucket, they can be like the character Anakin Skywalker in George Lucas’ famous series Star Wars, started out good, pure and noble. with only the best intentions but something happenedand he was influenced by the dark side. then he became the villainous Darth Vader. If the trust company is influenced, they have the ability to break through the magic of your bucket and steal these assets but the good news is, you don’t have to trust, the trust company. There is a fix, you simply put an offshore LLC in place. the offshore LLC can either be in the same jurisdiction as the trust or any place that has offshore LLCs or IBCs function as LLCs. every jurisdiction is different, this entity can be passed through, it’s normally a disregarded entity when it’s a single person but; you can also have it treated as a corporation.