Courts have been closed or working at a reduced schedule for much of 2020, but people and businesses are still suing each other. Are your personal and business assets protected from creditor threats?
We continue to utilize entities such as trusts, family limited partnerships (FLPs) and limited liability companies (LLCs), along with the laws of favorable jurisdictions, in order to protect our clients’ hard-earned assets from creditor threats and litigation.
The asset protection laws of offshore jurisdictions continue to interest both US and foreign clients. In 2020, we continued to establish offshore asset protection trusts, including for clients in Hong Kong and China who sought safe and stable jurisdictions at a time of increasing political, social and economic uncertainties in their home country.
Closer to home, the level of interest in offshore asset protection by our US clients peaks during each presidential election cycle and financial downturn, following rising doubts about government, banks and Wall Street. Our US clients have utilized offshore trusts for diversification, and as a hedge against political instability and economic uncertainty. During 2020, we have assisted clients in the US, Asia and throughout the world in achieving asset protection in jurisdictions that offer economic and political stability and strong banking laws.
We also note that in 2020, Connecticut became the twentieth US state to implement domestic asset protection trust (DAPT) laws. This follows similar legislation, including a 2017 Connecticut law that provides LLC members with stronger protections from creditors, including disallowing foreclosures on LLC interests and preserving charging orders as the exclusive remedy of creditors, as well as extending the benefit to single-member LLCs. Businesspeople are drawn to Delaware for its favorable corporate law and business-friendly courts. Asset protection clients consider Nevada, Wyoming and Delaware for their FLP and LLC formations. Connecticut is an increasingly interesting option.
Please contact us for assistance.