It is important to understand that the fundamental purpose of the legal tools employed in asset protection planning is neither to hide personal or business assets nor to deprive the U.S. Government of taxes derived from the income earned on those assets. Rather it is to shield assets from unforeseen attacks by dubious creditors or plaintiffs.
State laws, Federal laws, insurance policies, trusts, limited partnerships, and limited liability companies will each provide some benefit, but separately cannot protect ALL assets.
Vulnerable assets can be protected through the utilization of a comprehensive plan. This often includes an Asset Management Limited Partnership ™ (AMLP) together with a carefully crafted Bridge Trust ®. Collectively these tools provide a significant shield for your vulnerable assets, keeping them safe and out of the grasp of predatory creditors.
Each Integrated Asset Protection Plan is customized to our client’s needs. Designed by experts at Lodmell & Lodmell, these legal structures are designed to preserve and protect your wealth.
L&L’s asset protection services begin with no obligation and a confidential review of your financial resources, including your risk level, assets classifications, and personal objectives. Contact us to get started.
Legal Tools & Strategies
Asset Protection Trusts and LLCs
The Bridge Trust®: Offshore Protection with Domestic Simplicity
The Bridge Trust® combines the strengths of the offshore asset protection trusts, while avoiding their weaknesses. It is an Asset Protection Trust registered offshore but which is domesticated for tax and administrative purposes.
The Asset Management Limited Partnership™
The Asset Management Limited Partnership™ (AMLP) centralizes the management of liquid assets – cash, savings, investments and securities – while placing a legal barrier around them.
Foreign Asset Protection Trusts (FAPT)
A centerpiece of Asset Protection legal strategies, this type of Trust can be created and funded by a client (self-settled) who retains the benefits of trust property while simultaneously creating the highest level of protection from creditors. There are two important categories: International & Domestic. The first version began outside the United States as the Foreign Asset Protection Trust.
Domestic Asset Protection Trusts (DAPT)
Similar to its foreign counterpart, the Domestic Asset Protection Trust contains “spendthrift” provisions which specifically disallow creditors from accessing trust property. These trusts come with the benefits of lower maintenance costs, local trustees, reduced tax filings, and fewer federal disclosure forms.
Limited Liability Company (LLC)
The Limited Liability Company’s primary role is to compartmentalize “risky” assets that should not be directly mixed with safe assets held by the AMLP.
The Nevis Limited Liability Company (LLC)
The LLC is a fantastic legal tool for integrating assets and businesses into a full estate and asset protection plan.
5 Reasons Why the Bridge Trust® is Better than a Foreign Asset Protection Trust