Recent Florida Court Ruling on Foreign Asset Protection Trusts
You may have heard about a recent Florida court ruling that suggests your foreign asset protection trust, or FAPT, is not as rock solid as you thought. But don't panic. There is more to this story.
Protect Your Blind Side with an Asset Protection Plan
Remember the movie, The Blind Side? It was based on the inspiring story of NFL player Michael Oher. Oher's position? Left tackle. Now that's the player who protects the quarterback from what he can't see. In other words... his blind side.
Recent Court Rulings on California Trusts
Home is where your heart is, but it's not necessarily where your trust should be, especially if you live in the state of California. Several recent court rulings have whittled away trust protections, making those assets vulnerable to all kinds of creditors, including vindictive, soon to be ex-spouses.
Establishing a Trust
If you earn investment income in a high tax state and don't need to take that income, you should consider establishing a trust in a non-tax state. Why? Because the US Supreme Court has just handed down a decision that clarifies the rules.
If all your talent and hard work has finally paid off, and you have accumulated substantial wealth, you may think you are set for life. And you may be, if those assets are protected.
Asset protection is not just about future missteps, it's also about mistakes from the past or a greedy opportunist who sees dollar signs.
Business owners, managers, and legal counsel... beware. If you run afoul of certain employment practice laws in the state of California, you, your managers, and your shareholders could be on the hook personally.
There are two critical principles to consider when establishing a foreign asset protection trust: How much of your net worth should go into the trust? How much control should you keep over what happens with that trust.