Berkshire Tax Resolution - Asset Protection
Berkshire Tax Resolution defines an asset protection trust as any trust utilized to insulate assets from creditor attack. An asset protection trust is normally established in an offshore jurisdiction, although the assets will more often than not remain in the United States under the indirect control of the person establishing the trust (the "settlor"), explains Berkshire Tax Resolution. These trusts are normally structured so that they are irrevocable for a term of years and so that the settlor is not a current beneficiary. Berkshire Tax Resolution normally structures trusts so that they are treated as domestic grantor trusts for tax purposes. With a properly drafted and timely settled trust, the creditors of the settlor cannot reach the assets of the trust. Berkshire Tax Resolution would like you to know that an asset protection trust is also normally structured so that the undistributed assets of the trust are returned to the settlor upon termination of the trust provided there is no current risk of creditor attack, thus permitting the settlor to regain complete control over the formerly protected assets, explains Berkshire Tax Resolution.
Berkshire Tax Resolution Views A Asset Protection Trust As:
- An effective tool to settle or discourage litigation
- A means to keep the ownership of assets absolutely confidential
- An alternative to traditional pre-nuptial agreements
- A hedge against potential exchange controls
- A device to protect otherwise unprotectable pension assets
- A means to give an insolvent debtor a fresh start
- A way to internationalize investment and hedge against governmental instability
Berkshire Tax Resolution on How Asset Protection Works
There are literally hundreds of different techniques to protect different categories of assets. Some are appropriate for everybody and are based on common sense and others are appropriate for wealthy or soon-to-be-wealthy people, explains Berkshire Tax Resolution. Asset protection techniques also vary depending on both the type and location of property.
Berkshire Tax Resolution sheds light on the fact that all asset protection techniques have one thing in common: they each make it more difficult for a creditor to either find or take assets. By implementing a properly crafted asset protection plan, an individual can legitimately put a significant portion of his assets out of the reach of judgment creditors and still retain substantial control over these protected assets. Berkshire Tax Resolution would like you to know that a properly implemented asset protection strategy reduces the size of the target the plaintiff's attorney is shooting for. Once the plaintiff's attorney is convinced that any judgment will be difficult or impossible to collect, his motivation fades because he is unlikely to be paid for his work. The effect of asset protection planning is the destruction of the economic incentive to litigate, explains Berkshire Tax Resolution.