What is Asset Protection?
Asset protection is the structuring of assets in a way that these assets become legally unreachable to possible future claimants. Asset protection structures effectively shield a person's assets from future unexpected third party litigation, punitive damages, unjustified claims or other threats to a person's wealth. Proper asset protection structures do not encourage or depend on illegal acts such as perjury or concealment of assets in violation of law. Instead, through the use of foreign trusts, foundations, and certain insurance products, legal arrangements are made to effectively disconnect assets from the beneficial owners, thereby making it impossible for third parties to reach those assets.
Who Needs Asset Protection?
Wealthy individuals and families, corporate executives, private investors and business persons, doctors, and other persons who are at risk of being sued frivolously need to protect themselves and their families from unjustified lawsuits and claims. In a litigious society such as in the United States, where wealthy individuals and families are "moving targets" for aggressive lawyers, an offshore trust or an offshore life insurance policy is almost a necessity. It also makes sense to separate legal ownership of low-risk assets from high-risk assets, to avoid a possible liability claim (arising from the high risk asset). Lumping all assets in one ownership structure (for example direct ownership or a simple domestic trust) is a mistake commonly made by many financial advisors and lawyers. Furthermore, having assets properly structured may shield them from a possible future imposition of currency controls, possible confiscation of assets by the government, political instability, and other similar threats.
Offshore Asset Protection Trusts
Very often trusts set up in a foreign jurisdiction play an important role in asset protection planning. An offshore asset protection trust is a special form of trust created by a grantor in one jurisdiction under the laws of another jurisdiction in which the trust is domiciled and where it is controlled and operated. A foreign ("offshore") trust can overcome most of the problems connected with using a domestic trust for asset protection.
Offshore Insurance Products
Insurance products are also excellent instruments for internationalasset protection. Swiss insurance products offer particular advantages, because of special provisions in the Swiss insurance law. For more information, please see www.swissannuities.com.
Why Use the Services of Henley & Partners?
Finding good asset protection solutions requires both careful and professional attention to ensure that the wishes and needs of the client are fulfilled. Without proper advice, not only at the outset but each time a client's situation changes, matrimonial, succession and tax problems may arise, besides having the risk that the asset protection structure may not withstand if challenged in the courts.
Henley & Partnersadvise on international asset protectionstrategies and related tax planning. Through us you have access to a unique, worldwidenetwork of specialist lawyers, tax consultants, investment advisors, and other professionals who are experts in their fields. We combine the expertise of these professionals in their relevant fields to provide you with excellent advice and service. To the advantage of the client, Henley & Partners also specialise in exclusive private residence solutions and related tax planning - a powerful combination of expertise and experience.
Weanalyse each client's situation carefully, point out available options, develop a plan of action and make it happen. By working closely together as a team, our consultants ensure that their knowledge and experience are shared so that the specific details of each client's case are considered from all relevant perspectives.
No matter how complex your needs are, the network of Henley & Partners will be able to advise and assist you. Henley & Partners provide all clients with individual advice and comprehensive, yet cost-effective solutions to their estate planning and asset protection requirements.
