Trusts have been used for centuries by the wealthy for privacy and asset protection. Because they are not widely used in mainstream society, nor is this information taught in the educational system, the average individual understands little about Trusts and their importance. This lack of knowledge creates intimidation for fear of the unknown, leaving most people to believe that setting up a Trust is expensive and could potentially take the asset away from them. However, it is quite the contrary. It provides incredible protection and greatly reduces liability.
Did you ever wonder how the wealthy, rich and famous protect the property they own? Itâ€™s very simpleâ€¦they use privacy and laws to protect their assets. They use legal entities created under the different laws, trust laws, corporate laws, partnership laws, and tax loopholes available to all, not just the elite. They follow the advice of John Rockefeller and â€œControl Everything, but Own Nothing!â€
Most people want to “own” assets, while the wealthy and â€œeliteâ€ understand that “control” is better than “ownership.” By not owning the asset, they control frivolous lawsuits, they avoid probate, they avoid estate taxes, and they are able to significantly reduce their taxes. Ownership is the absolute right to possess and use property to the exclusion of others.
Ownership is absolute; control is not. If assets are in the absolute control of others, there’s no control on how it can be transferred, thus avoiding frivolous lawsuits. In other words, if you donâ€™t own the asset you canâ€™t get sued for it. The rich have also learned to diversify their assets worldwide. The theory “don’t put your eggs in one basket” applies to everyone, not just the rich. Everyone has the same opportunity to diversify and to avoid litigation by limiting the exposure of assets. There is nothing that the rich are doing that is not available to everyone.
Trust Consulting Services is dedicated to educating families about the importance of keeping assets private by using various trusts and estate preservation techniques to reduce the potential for lawsuits, liens, garnishments or other attempts to reduce wealth.