Some commentators on the subject have been critical of the use of domestic structures such as limited partnerships, limited liability companies, corporations, charitable trusts, irrevocable life insurance trusts and outright gifts on the grounds that these structures are subject to the vagaries of U.S. j udges and juries. Frankly, if any of us get on the wrong side of some government agency, I agree that domestic partnerships, corporations, charitable trusts and even outright gifts to others may have little value in protecting our assets from forfeiture or some other means of appropriation. Even offshore trusts may not work because a U.S. court could threaten to put you in jail if you refuse to return the property to the U.S. Never mind that you may not have the power to comply. The judge makes the law until you can appeal. If your greatest fear is about losing your assets to your own government, it seems to me the safest course of action is to move abroad and to take your assets with you. For those who worry about an outlaw government, there is no legal safeguard I can think of to protect your assets within the jurisdiction of the government. Hopefully, some of the political pressures for change will greatly reduce the risk of increasing the powers of the government to violate the intent of the Constitution by permitting government employees to conduct witch hunts to secure property without due process or just cause. Meanwhile, we each have to decide whether we prefer to stay here or to leave. For those who decide to stay, the most effective method of asset protection appears to be a foreign trust, perhaps combined with a foreign limited liability company..
Company is Sued For Not Paying Off A Regulator If this case is decided for the plaintiff, it will have to be right up there with the scalding coffee suit against McDonalds as one of the most “Absurd Awards�. The February 27, 1997 issue of The Wall Street Journal reported that an environmental regulator is suing a nuclear waste disposal company because the disposal company allegedly refused to pay the regulator for certain favors the regulator conferred on the waste disposal company. What a strange world we live in. And - even if the plaintiff doesn't win the suit, it will cost the defendant or his insurance company some substantial legal fees. If the defendant has liability insurance that is broad enough to cover this kind of claim, the insurance company will probably pressure the defendant to settle. But it's much more likely that the insurance company will have some clause in their contract that will excuse them from liability in this case.
Who Needs Asset Protection ?