Asset Protection Attorneys use a number of strategies to protectively title
a client’s assets against future potential threats and creditors.
Common techniques include
layering firewalls and converting or equity-stripping assets. It is also wise to spread assets around by diversifying into separate
protective entities or baskets.
The idiom “don’t put all eggs in one basket” can be used
here to warn us against keeping the majority of assets in the same place.
Instead, force your creditor to pursue assets deployed in a number or
different ways. Deployment isn’t merely limited to different directions,
but also protected by different entities, and entrenched in several jurisdictions.
By scattering your assets you severely hamper your creditor. Even if your
creditor recovers assets from "one basket," wealth properly
sheltered in other "baskets" remains safe.
This diversification is essential to protect significant wealth. If, for
example, you have millions at risk, it would be wise to would separate
your funds into several protective, dissimilar baskets. These "baskets"
would be different protective entities (or entity combinations), and in
different jurisdictions – whether states or countries.
By combining layering (or
defense-in-depth) with diversification (defense-in-breadth), your Asset Protection Attorney can produce a strong Asset Protection shield.