Significant Concepts and Facts
The Marvont Group provided some important concepts and interesting facts regarding asset protection.
- Remember that no one can take away your assets from you without first winning a lawsuit and getting a judgment. Except in the rarest of situations, or in the case of the Internal Revenue Service (IRS) or in certain divorce situations, a pre-judgment attachment is not available in the United States. You always have quite a long warning time.
- The best period to implement asset protection strategies is when the financial seas are calm. Sometimes, it is too late to do any critical protecting once the attacks have been mounted because of the fraudulent conveyancing laws. You work hard to make your money and The Marvont Group believes that you should take 10 percent of this effort and direct it toward protecting your savings.
- What judgment creditors don’t know about can’t be taken. Put simply, stealth works. Never volunteer anything.
- Judgment creditors can only take what you have and if it’s not yours, they can’t take it.
- There was no country in the world that will automatically recognize judgments from a court in the United States. To register and enforce a U.S. judgment overseas, the case must first be relitigated in the foreign country (not true with respect to certain arbitration awards which are sometimes recognized by virtue of a treaty). No country anywhere in the world recognizes tax oriented judgments from the United States. In addition, many decline to recognize U.S. tort, securities and antitrust judgments. They simply think that the country’s laws are unwise and unjust, and refuse to recognize judgments based on senseless laws. This is one reason for asset protection trusts.
- Never trust anyone, particularly a foreign trust company with your hard-earned money. Each asset protection plans should be structured so that you’re never vulnerable to any other individual taking or dealing with your money without your permission.
- Never combine liability generating assets in the same entity. For instance, you should never have two apartment houses owned by the same limited partnership.
- The only country in the world which allows contingent fee litigation is the United States. It is unprofessional in all other countries for an attorney to take a case on a contingent fee basis. Furthermore, the plaintiff in several countries should post cash with the court to handle the defendant’s fees and costs if the plaintiff is unsuccessful.
- One out of ten Americans is sued every year.
- Every year, there are 13.9 malpractice claims for each 100 doctors. Four out of ten medical doctors have been sued. The average Obstetrician in New York has been sued eight times and many are leaving the field. The average verdict nationwide against doctors is $1.33 million and in New York it is three times larger.
- The same is true in many other professions. There are now more than thousands of suits against accountants in the United States seeking over $13 billion in damages. Huge judgments, like the recent $338 million judgement against Price Waterhouse are being obtained. Many large regional firms have gone bankrupt.
- Attorneys are also affected by malpractice claims, even if sometimes they are the cause of our problems.
- Every single businessman, including board members, business owners, developers and syndicators is exposed. The liability is frequently based on developing and unexpected legal theories. For example, the partners in a leading law firm were recently stunned when they were notified of their joint and numerous liabilities under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) for the projected $72 million toxic cleanup cost on a parcel of raw land they bought during the early 1970’s.
- There are currently more than 880,000 lawyers in the United States compared with 13,500 in Japan that has been licensed to file lawsuits. It is estimated that 36 percent among these lawyers are either unemployed or underemployed. The economic incentive for these underemployed lawyers is to file suits and force settlement. It is usually less expensive to buy peace instead of fighting on principle.