Dont believe that your little structure will protect you and your assets

Dont believe that your little offshore structure will protect you or your assets.
The legitimacy of most offshore structures is always couched in the supposed real life reality that there are so many offshore or hidden structures that exist and few have been caught. The basic premise is fallacious in that if the client put money in one of these strategies and there is a litigation threat or an event that takes place in a subsequent intergenerational asset passage, litigating the matter in the offshore court system is fraught with uncertainty at best and the process may unearth former clandestine operations. In addition, there is the real threat of blackmail or the diminished version whereby the client is powerless to do anything as a result of his own illegality. This is the very reason that when most of these clients are ripped-off, they can’t or do not complain much due to the illicit nature of the assets in question and the structure the assets reside in. This issue is endemic to trusts and foundations where the use of nominees is common. For trusts many employ a sham protector, or in the case of foundations a nominee board of directors that have given irrevocable power of attorney to an insider. In either case the veneer is thin in today’s post 911 environment. The asset holder under these scenarios is in fact quite powerless for they are counting on these same nominees to not divulge the secret. This is not an issue though with Asset Protection Insurance™ (“API™”) as all aspects are fully disclosed as the insurance can only protect fully disclosed assets and liabilities. There has to complete transparency and a failure to report any liability (including taxation) would probably constitute an event invalidating the policy. Do not blindly believe because you want to do you homework! Jeff Lipton

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