Hedge Risk and Liability with the Power of Trusts

Hedging Risk with Trusts

You’ve worked hard for your success, and along the way you have acquired assets — real estate, stock, business ownership, classic cars, private aircraft, artwork, jewelry — items that are of significant value to you. You want to protect them and pass them on quietly and smoothly to the people you love but keep control of their value and direction. And most importantly, you want minimize liability, and fully enjoy the benefits of these assets contribute to your lifestyle.

Everyone worries about protecting their assets. Yet many who share your concern have their financial affairs dis-organized in ways that leave them exposed to loss from life’s predators. Your emotional well-being is distracted by government processes, the media, lawsuits, accidents, debilitating illness, or other unforeseen entities, actions and circumstances. These nasty surprises can take your money and bite your spirit.

What Ever Happened to Privacy?

Social change. Years ago people respected financial privacy. They never asked how much money you earned or how much you paid for your house. If they did you wouldn’t tell them. And it was difficult for them to find out. Financial matters were understood to be confidential.

Technology change. Today technical barriers to financial privacy are gone. Databases have exploded. People ask personal financial questions on impulse, or they’ll search to find out. Unless you’re using private trusts for holding assets, the Internet easily reveals details of what you own to anyone.

The best way to protect your privacy, your assets, your family, and yourself — is to change the game. You can do this by organizing your assets into one or more private trusts. 

Trusts are financial devices ranging from the well-known Living Trust to more sophisticated private trusts designed for specific assets – such as real estate, a business organization, or valuable possessions.

Who Is most at Risk?

Those with professional licenses are most at risk. These include attorneys, physicians, dentists, real estate licensees, accountants, or anyone with a government sanctioned professional license to earn money. Why? Because your livelihood and earnings are contingent upon government approval. In this sense, outsiders can push claims against you knowing that your license is potentially at risk. If you hold a professional license, you are vunerable. Yes, you can hire defenders of the law to fight on your behalf, yet best to keep financial assets safely out of reach.

If you currently own a corporation, an llc or any partnership registered with the secretary of state, you also have exposure. Keep these entities yet bury your ownership interests within a private trust.

Identity Theft

Reduced your exposure to identify theft with privacy. Targets with visible and valuable assets, namely real estate are prime ID theft targets. This is because they know you are a person of means and likely have financial resources. This is like low hanging ripe fruit to the bad guys. Minimize your exposure by using a private trust or several trusts to conceal true ownership information.

Asset Protection Trusts

Several states now offer asset protection trusts by statute. If you follow their rules, you can protect your assets from virtally any type of creditor attack. Yet there are ways these trusts fail to deliver. For example, if you reside outside of their state, or your physical assets are located outside that state. Because in those cases, the rules of law in your personal domicile or that of a subject asset take priority. If you ever get into a pinch and the federal magistrate or plaintiff’s attorney even see the words “asset protection” mentioned once, you’re toast. Be very careful.


Tap Into the Power of Trusts

To tap into the unique power of trusts for ensuring a secure financial future you need an expert, and we are the experts across a broad range of infinitely valuable private trusts. TrustArte is here to personally assist you. We’re here to educate you. We’re here to give you the financial security you not only deserve, but need.

Request a Personal Consultation

Our Open Philosophy Trust Arte invites other professional advisors such as tax specialists and accountants to develop the most effective solutions for our clients. Should their services be of value to you, our trust professionals will work with your other advisors. This “open architecture” philosophy, which is reflected throughout our organization, allows us to build closer relationships with our clients and offer them the best solutions.