Asset Management Information:

An arm's-length cash sale is the best way to protect the residence (and the equity in the residence) because it is much easier to protect liquid assets (see discussion below) than real estate. The owners of shares theoretically have great power to alter the companies they own. Asset protection began to develop as a stand-alone area of the law in the late 1970s.

According to Jacob Stein simply changing legal title to a living trust with a generic name may work to defeat the claims of some creditors, but not most. The need to answer all these questions has led to the development of more sophisticated performance measures, many of which originate in modern portfolio theory. Have you ever wondered if there are other countries that offer stable economies along with very favorable investing environments?

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    Another way to strip out the equity (frequently advocated by clients), is to encumber the residence by recording a deed of trust in favor of a friend. Asset protection (sometimes also referred to as debtor-creditor law) refers to a set of legal techniques and a body of statutory and common law dealing with protecting assets of individuals and business entities from civil money judgments. Asset protection sets as its goal the concept of removing assets from a debtor's legal ownership, while retaining control and beneficial ownership.

    It is important to look at the evidence on the long-term returns to different assets, and to holding period returns (the returns that accrue on average over different lengths of investment). Assets owned by a debtor through a legal entity are not deemed owned by the debtor because legal entities have a separate juridical existence. The most successful investment firms in the world have probably been those that have been separated physically and psychologically from banks and insurance companies.

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