PROTECTIONYOUR WEALTH

ASSET3 WAYS

WILL HELP YOU GUARD

Asset protection is intended to protect an individual’s or business’s assets from creditor claims, while operating within the bounds of debtor-creditor law.

The concept of and strategies forGUARDING ONE’S WEALTH.

WHAT IS ASSETPROTECTION?

PROPER ASSET STRUCTURE HELPS YOU SAVE ON TAXES

OVER 100 MILLIONLAWSUITS

Currently,

are pending the U.S.

A lawsuit is filed every 30 seconds.

Businesses with an income of

in self-employment taxes.

2.7% - 4.6% OR $2,700 - $6,900

can save$100,000 - $150,000

Specific legal structure

CAN REDUCE YOUR CAPITAL

GAIN TAXES from real estate, stocks,

investments, etc.

*According to the institute for legal reform.

of small business owners have been

threatened or involved in a lawsuit.

43%

ASSET PROTECTION STRATEGIES HELP GUARD YOU FROM LAWSUITS

1 2

*Reserached by SBA

Business owners typically pay

per case in legal costs.

$3,000 $150,000

TO

Rental PropertyPurchased Price

$250,000

Property Value (25 Years Later)$1,250,000

John and Mary Smith purchased a rental property for $250,000.

25 years later the property value had

appreciated to $1,250,000.

If they sell the property for $1,250,00, they would pay capital gains taxes on $1,000,000. Their capital gains combined federal and state tax rate is 20%, which would result in a tax of $200,000 ($1,000,000 x 20%).

Total Sale Amount

Gain

NET PROF IT NET PROF IT

Original Rental Property Purchase Price

Capital Gains Taxes($1,000,000 x 20%)

$1,250,00

($200,000)

$1,000,000

$800,000

If John and Mary first transferred the property into a charitable remainder trust (CRT)* and the CRT then sold the assets for $1,250,000, they would owe zero capital gains tax; and all $1,250,000 would go into the trust to be dispersed in alternate ways.

Total Sale Amount (Sold by CRT*)

Capital Gain

Original Rental Property Purchase Price

No Capital Gains Taxes

$1,250,00

($250,000)($250,000)

($0)

$1,000,000

$1,000,000

Scenario BScenario A

Many businesses owners believe that once incorporated, their personal assests are protected, but thatʼs simply not the case.

A corporate veil can be easily be pierced in order to claim assets during a lawsuit.

Proper business structuring can protect your personal assets with no downside.

Experienced asset protection experts use long standing methods to shield your business from lawsuits, such as:

OF YOUR ASSETS COULD BE THE LOST

to taxes and probate when you pass on?

A will simply isn’t enough, it requires a properly structured trust.

BUSINESSINCORPORATED

HOW DO ASSET PROTECTION EXPERTS MAKE A DIFFERENCE?

ASSET PROTECTION EXPERTS CAN ENSURE SUCCESSION OF YOUR ASSETS

PROPER BUSINESS STRUCTURING

350%

LAWSUITS

Laws designed to protect the value of the homes of residents from property taxes, creditors, and circumstances arising from death of the homeowner spouse.

Some areas do have homestead exemptions to reduce the value of the home that is subject to property tax.

These laws can vary by state.

LLC laws specifically prohibit a lawsuit against the members for a claim against the business.

An LLC has a great deal of flexibility and can be taxed as a sole proprietor, partnership, S corporation or C corporation.

Some states do not allow licensed professionals to operate their professional practices as an LLC.

KNOWLEDGE OF HOMESTEAD LAWS

PROFESSIONAL LIMITED LIABILITY COMPANIES (PLLCS)

LIMITED LIABILITY COMPANIES (LLCS)

(Doesnʼt protect against property tax liens!)

(Making sure your professional is up to date with the latest laws in your state is essential).

LLC tax

FLP tax

A Professional Limited Liability Company (PLLC) can be used by professionals to isolate themselves from liability of other partners.

It is important for professionals to have personal and practice assets in LLCs and/or FLPs to be protected.

PROFESSIONAL LIMITED LIABILITY COMPANIES (PLLCS)

FLPs are a business structure frequently used to move family wealth from one generation to another with favorable tax treatment.

FLPs are typically holding companies, acting as an entity that holds the asset contributed by the family members.

FAMILY LIMITED PARTNERSHIPS (FLPS)

A PLLC does not limit personal liability for malpractice, meaning assets can be taken to satisfy a judgement against the business for malpractice.

REMEMBER

COMPANY

SOURCES:http://americasocietyap.org/http://americasocietyap.org/the-american-society-for-asset-protection-how we-help-business-owners.phphttp://americasocietyap.org/tips-for-business-owners-looking-for-asset-protection.phphttp://americansocietyforassetprotection.com/the-american-society-for-asset-protections-plan-to-protect-you-as-a-business-owner.phphttp://americansocietyap.org/how-the-american-society-for-asset-protection-is-not-another-scam.phphttp://www.examiner.com/article/what-is-asset-protection-and-are-asset-protection-kits-a-scamhttp://www.examiner.com/article/what-american-asset-protection-�rms-dohttp://www.linkedin.com/pulse/7-ways-your-business-protecting-assets-properly-hans-kirchhausenhttp://americansocietyforassetprotection.com/faqs.phphttp://www.investopedia.com/terms/a/asset-protection.asphttp://www.washingtonpost.com/news/wonk/wp/2014/04/15/did-you-just-overpay-or-underpay-your-taxeshttp://www.watsoncpagroup.com/kb/Is-There-a-way-to-avoid-Self-Employment-tax_74.htmlhttp://en.wikipedia.org/wiki/Homestead_exemptionhttp://en.wikipedia.org/wiki/Family_Limited_Partnership

Our Society achieves this mission by sponsoring the nation’s top lawsuit protection experts to present across the nation.

OUR TEAM AT THE AMERICAN SOCIETY FOR ASSET PROTECTION ARE EXPERTS IN THE ASSET PROTECTION ARENA.

We are a reputable company that works to educate business owners on how best to keep their assets safe. We pride ourselves in teaching professionals how to structure

their assets for lawsuit protection and prevention.