When it comes to protecting your assets, having a legal strategy in place is essential. With the right planning and advice from a qualified lawyer, you can protect yourself from creditors, lawsuits, or other financial losses. There are three main levels of asset protection.
The first is an LLC in a particular state. These LLCs provide an extra layer of legal protection by shielding personal assets from business debts, lawsuits, and other liabilities. The LLC is designed and created in a jurisdiction (not Colorado) that grants only Charging Orders to plaintiffs. That means plaintiffs, creditors, and others cannot loot your LLC or force you to distribute assets from the LLC to them.
The second asset protection legal strategy is to create a domestic trust in a jurisdiction that allows self-settled asset protection trusts (not Colorado). A Trust can be used to protect assets from creditors, lawsuits, or other debts. This type of trust allows you to transfer your assets into it and appoint someone else as the trustee who will manage them on your behalf.
The highest level of asset protection is a foreign asset protection trust which is similar to a domestic trust, but it involves transferring your assets across international borders. This provides an extra layer of legal protection since the laws of different countries vary significantly.