How can I protect real estate?

The key to the effectiveness of asset protection planning is to remove the assets from the reach of U.S. creditors. With an immovable asset such as real estate, the asset remains within the reach of the U.S. court system, and potentially subject to a creditor’s claim.  As such, alternate strategies must be used to protect these types of assets.

To protect real estate, we use an ancillary planning technique. Loans are sourced from an independent, unrelated lender in exchange for liens against the property. The use of an independent, unrelated lender is crucial to the efficacy of this strategy. Utilizing loans from a friend, relative, or other non-independent source will not stand up to a court’s scrutiny (resulting in the court disregarding the loan and exposing the real property to the creditor’s claim). In our structure, the loan proceeds are transferred to the client’s offshore trust (protected from creditors) and the real estate is subject to the lender’s prior lien which must be paid before any creditor can attempt to collect.

This strategy can only be implemented before a lawsuit is filed.

Contact us to get answers as to how we can help you to effectively protect your real estate, and we’ll explain how to move forward planning the right type of asset protection. Simply contact us