Congratulations! You’ve sold your business and the ink has finally dried on your check. Now what? You may have a very specific plan for that money or you may not, but either way it is crucial to protect it. Why? We have often seen the purchaser run the business into the ground and try to recover some or all of the purchase price by claiming misrepresentations were made. If those proceeds are properly protected, there will be no “post-sale price reduction.”
There is a great deal of misinformation that exists surrounding offshore asset protection, when in reality it could be your best option. It’s important for South Florida business owners to educate themselves on the differences between onshore and offshore planning and to understand the facts versus the myths.
Among our many success stories is a South Florida business owner who sold his share of the company after having a falling out with his business partner. After several years, as his partner moved closer to bankruptcy, he decided to sue our client, knowing that our client had the money from the sale of their company. At one point, the partner even broke into our client’s house and tried to seize everything while the client was away. Luckily, the client had the foresight to protect his assets and they were already located in an offshore trust that had no connection to the United States, so the plaintiff’s attorneys were unable to get to his money.
Properly structured asset protection planning can effectively protect your assets from potential litigants and creditors. It allows an individual, partnership, LLC, trust or corporation to protect assets against unanticipated claims, yet maintain a great degree of flexibility. That means that as a business owner, you’ll have one less thing to worry about.
Howard Rosen is a partner at the law firm of Donlevy-Rosen & Rosen, P.A. His publications include the BNA Tax Management Portfolio titled “Asset Protection Planning” (1994, 2002), of which he is a founding author. Patricia Donlevy-Rosen is also a partner at Donlevy-Rosen & Rosen. Her publications include the RIA Tax Advisors Planning Series titled “Asset Protection Planning.” Due to their extensive experience with offshore asset protection planning and the related tax issues, they are regarded as authorities on the subjects among their peers.
Have a ‘My View’?
If you have a point of view on a business topic you would like to share, consider writing about it for Business Monday. Pitch your idea to rclarke@MiamiHerald.com. Guidelines: Submissions should be around 600 words; should state a topic clearly, with supporting examples; and use examples drawn from South Florida. They should also be accompanied by a photo of the writer, emailed as a jpeg. ‘My View’ submissions that are accepted are published as space allows.