The fact of life is asset protection should be on everyone's mind. Do you want your assets going to your now outlaw after they divorce your child or to your spouse's new family after you die and they remarry or to a creditor or predator of your loved ones? Asset protection should be addressed in revocable trust planning as well as in business settings. Nothing can guarantee that a creditor can reach your assets but precautions can be made to minimize this threat.
Asset protection is a process that minimizes the risk of loss from business threats or personal liability. It is not a process to defraud, hinder or delay creditors. It must be done in advance. Justice Bradeis put it very well when from the United States Supreme Court bench he said: "I live in Alexandria, Virginia. Near the Supreme Court chambers is a toll bridge across the Potomac. When in a rush, I pay the dollar toll and get home early.
However, I usually drive outside the downtown section of the city and cross the Potomac on a free bridge. This bridge was placed outside the downtown Washington, DC area to serve a useful social service, getting drivers to drive the extra mile and help alleviate congestion during the rush hour. If I went over the toll bridge and through the barrier without paying the toll, I would be committing tax evasion.
If, however, I drive the extra mile and drive outside the city of Washington to the free bridge, I am using a legitimate, logical and suitable method of tax avoidance, and am performing a useful social service by doing so.
For my tax evasion, I should be punished. For my tax avoidance, I should be commended. The tragedy of life today is that so few people know that the free bridge even exists." It is the right of every American to protect their hard earned wealth. We at Hamilton & Associates, PLLC discuss how every Client can do this.