Chapter 17 -  What You Need To Know About Real Estate & Terrorism Risk

Chapter 18 -  Solutions To New Regulatory Burdens and Risks
Case Study # 10 Inadequate Due Diligence
Case Study # 11  Be Careful When Banking Offshore
Case Study # 12  The Snitch Factor

Section Five - How To Build Safe Protected Wealth

Chapter 19 - New & Enhanced Post 9/11 Wealth Planning & Protection Techniques

Chapter 20 - How To Choose an Investment Or Wealth Planning Advisor 

Chapter 21 - The Swiss Inner Circle

Chapter 22 - Other Global Consultants, Publications & Organizations 

Section Six - You’ve Protected Your Wealth Now Restore Your Liberty 
 
Chapter 23 -  Back To The Articles: Restoring the Republic With the Swiss Confederation Institute     

Chapter 24 – FreedomFest: Where Free Minds Meet  

Chapter 25- Don't Delay: Start Today To Preserve Your Wealth & Liberty  

Chapter 26 - Are You Willing To Pay the High Price For Freedom?  

Case Studies  

Resource Guide  

About the Author  

THE SWISS Preserve SOLUTION
Ron Holland's politically incorrect guide to defending your wealth & liberty
from internal and external threats in our new 21st Century world.  
 

A Google search engine for the online book, The Swiss Preserve Solution.

Section Four - Choose An Appropriate Strategy But Get it Right the First Time

Section Introduction: Blindly investing offshore without doing the proper due diligence and research to determine advisors, strategies and products best suited to your needs is more risky than keeping all of your investment funds inside the United States.  Educate yourself, choose respected consultants and highly regulated jurisdictions and plan your strategy right because investment mistakes and a poor choice of advisors can cost you money just as it does in the U.S.

Chapter 14 - Utilize Asset Protection Techniques to Build Maximum Protected Wealth

Talking Points: What can we learn from legal and jurisdictional attacks on asset protection since 9/11? What are the legal loopholes used to steal the wealth of productive working Americans and how do we build maximum protected wealth against this threat? It is apparent that duress clauses and the limitation of client access to the protected funds better defends your wealth. This defense, along with the confidentiality and protection that a respected top-tier offshore jurisdiction provides, effectively defends most legitimate wealth safely protected offshore.

"There are over 3,000 federal criminal statutes, including more than 200 offenses for which your property can be seized, often without a criminal conviction. Are you unknowingly violating any of them?"     -- Mark Nestmann
His URL is www.nestmann.com

       It is time to cut to the chase. We must put the philosophy, history, and old-style asset protection measures behind us and have a frank discussion on innovative wealth protection techniques necessary to build the most bullet-proof protected wealth possible in our 21^st century environment.  Regulations, jurisdictions, products, and the degree of privacy have changed since 9/11. Therefore, our wealth preservation structures and strategies must also change to meet these new challenges of today.  Listed below are the features we will discuss on the following pages:

·         Utilize Client Duress Protection In Your Offshore Trust or Annuity Strategy

·         Enhance Your Protection from Litigation and Divorce

·         Take Advantage of Attorney/Client Privilege for Increased Confidentiality

·         All Documentation Should Be Held Offshore

·         Maintain a Low Profile

       In order to build maximum protected wealth, it is necessary to close the loopholes used to capture the assets held in old-style asset protection structures.  Duress protections are important in order to keep the courts and others from forcing you to do what you would not have done on your own free will.  Your asset protection strategy should not depend on permanent personal, business or family relationships because these often change, especially when large sums of money are involved. Remember, your best friend can quickly become your worst enemy.

       The use of attorney/client privileges can help keep your communications and structures stay confidential if you utilize an attorney in jurisdictions where attorney/client communications are still private. This confidentiality can be further enhanced through products and strategies requiring the minimal amount of legal reporting and by maintaining all documentation outside your own country.

Utilize Client Duress Protection

       Maximum asset protection is created with a duress clause allowing a financial service provider, trustee, or your attorney to require a visit from the individual beneficial owner if there is any question whether a withdrawal or liquidation is voluntary or under some type of coercion from outside parties. The duress clause should still allow for investment strategies and portfolios to be changed at any time.  Funds needed for immediate liquidity should never be invested in a wealth preservation program in the first place because if short-term liquidity needs can be met this opens up your structure to outside attack. This is why other funds should remain accessible outside of your offshore protected wealth in order meet any short or intermediate-term needs without weakening your structure.

Case Study # 7 Contempt of Court

       Dr. John Doe worked in a specialized field of medicine. He sees many friends and colleagues constantly subjected to nuisances and, on occasion, threatening lawsuits. Following advice, he legally established an offshore asset protection trust that allowed for a credit/debit card when he needed to withdraw distributions.  John was later sued, and due to an unfair judge and corrupt legal system, he lost and a judgment was taken out against him.

       After the court had cleaned out all of his U.S. domiciled property and investments they then moved against his offshore asset protection trust. He and his lawyers used the usual asset protection trust defense but the judge just ruled him in contempt of court for not turning over the funds as requested, using the monthly and annual limit on the debit card withdrawal against the trust.  John refused to do roll over, knowing that his last remaining wealth available for his family and children’s education was in the trust and thus spent many months in jail for contempt. This destroyed his career, his health, and his marriage.

       A better solution:   One option to consider in a properly structured plan is to not provide for an option to access most of your protected funds, except during pre-established intervals when you might want to cancel or make a withdrawal.  The structure should also contain a duress clause to make sure you are not being forced to withdraw funds against your will during these pre-established withdrawal or cancellation periods. Few judges would be able to demand or enforce a contempt of court action against a person utilizing a structure with delayed and only pre-established withdrawal or cancellation options.

Do You Really Want A Loan Provision In Your Offshore Structure?

       Offshore account and structure loans are an open invitation to plaintiff’s and courts to access and steal your protected wealth. The funds you desire to place in an asset protected environment should never be what you might require for short or intermediate-term lifestyle needs. The right to borrow from your structure can be an open door for those out to steal your wealth.

Case Study #8 Variable Annuity Loans

       John Doe invested $500,000 in a standard offshore fixed or variable annuity for asset protection. While this kind of investment, depending on the jurisdiction and product, can provide substantial protection from judgments and lawsuits, a loan provision can limit your wealth defense.  Here's why:

       Imagine that John is faced with an unwarranted lawsuit and loses the domestic case. Although the offshore jurisdiction provided iron clad asset protection to life insurance and annuity products, his home country judge could have cared less about foreign jurisdictional laws and legislation. The court demanded a copy of the annuity contract, saw the loan provision and immediately ordered John to borrow the proceeds out of the contract. If he refused he would be placed in contempt of court for failing to follow the court order.

       Both the judge and John lived in downtown New York City and they well understood the life threatening danger and risk of sexual attack sure to happen to him in the local jail.  John had no recourse but to agree to the judge’s court order and his offshore protected funds were lost.

       A Better Solution: Make sure if you have an annuity or life insurance product with an offshore insurance provider, that you make reference to the fact that under duress, the insurance company and/or properly structured trust will not allow for pledging of the policy, or where applicable, an internal loan provision will not be offered.

Enhance Your Protection from Litigation and Divorce

       In proper asset protection planning, everything should be transparent and legal from the beginning.  Utilizing a strategy, which is tax compliant, deferred, and fully disclosed means the IRS will not get involved should a relationship go sour.

Case Study #9 Maximum Divorce Protection

       Mary has decided to leave her husband John for a younger woman and indicates they and the children will soon be relocating to the Cayman Islands. She has always been the major breadwinner while John became a stay at home dad caring for the home and children.  Mary has offered to split their home and U.S. assets 50/50 which would result in approximately $100,000 each in order to work out a fair and equitable settlement.

       Suffice it to say that John’s ego has taken a bad hit and he is really upset at this turn of events. John has always been a snooper around the house and discovered that Mary had been stashing legal, after-tax money for years in an offshore bank account and she has neither disclosed the foreign financial account nor paid taxes on the interest. There is one million dollars in the account and John knows their U.S. disclosed assets reduced by substantial debts only equals $200,000. Out of anger and need for money, John goes to the IRS with this information hoping for his possible 15% share of the reward.  You know the rest of the story. John gets the snitch money while Mary and the children become destitute because the $200,000 is eaten up by legal fees from lawyers representing both sides in the divorce.

       A Better Solution:  A different outcome would probably have resulted had Mary, regardless of her personal integrity and relationship failings, taken a new 21st century asset protection approach to the situation. Here's another scenario.

       First, using an insurance product rather than a bank account could have made all her offshore earnings tax-deferred. Second, the money came from after-tax earnings so there were no legal problems here as anyone can establish an offshore account. The account could have been an insurance product, which usually only requires the one time filing of a 1% excise tax form. Therefore, she would not have had regulatory or annual reporting problems with the account.

       Next, since the account had been established for years, the courts would probably have ruled no attempt at fraudulent conveyance, while John's lawyers would surely have demanded half of the tax-deferred account and might have won the case had they agreed to take it on a contingency basis. However, if the lawyer had really reviewed the situation, they probably would have demanded upfront fees due to Mary's iron clad asset protection plan.  But let’s assume the lawyer was just a nice guy and felt sorry for John’s treatment and that John won his case in court.

Ron Fact, Book & Video Recommendations For This Page:
When you review the problems and corruption in the American legal and regulatory systems it is clear that few legal protections exist today for productive working Americans. This is why it is so important to take advantage of legal, offshore asset protection techniques. - Ron Holland

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