While asset protection is more often than not used in relation to business assets, it is also possible to protect your personal assets and these include personal residence, trademarks, patents, copyrights, cash, patents, investment securities etc. Given the explosion in lawsuits, frivolous and otherwise, it has become expedient to take steps to safeguard your assets and shield lawfully them from what might amount to legal extortion by an aggressive litigant.
The ease with which information about your ownership of assets may be verified makes it very easy for a plaintiff’s attorney to verify yourt ownership of various assets and once this is done, you become a viable target for what might amount to legal extortion. This is the direct result of exposing your personal assets to risk of litigation. You must also bear in mind the fact that you have to pay your own attorney for his services.
One of the best ways of protecting your personal assets is by using the entity known as a Nevada Limited Liability Company as opposed to a regular corporation. Currently, Nevada’s asset protection laws are the strongest in the United States and a Nevada LLC does not require a business purpose to be formed and may be run as an investment management company thus enabling it to hold assets thereby shielding them from judgments.
Individuals who transfer their assets to a Nevada LLC receive a membership interest in return. In the event that judgment is given in favor of the creditor, any attempt to locate your assets will only turn up your membership interest in the Nevada LLC and even if you are compelled by court order to disclose your membership interest, once you do so, the financial enormity of taking up the Nevada LLC in court will likely discourage the creditor.
At Moss, we encourage proactivity as proactive steps are very vital in asset protection issues and it is better you act now to avoid a difficult time later on.