If you a question regarding the ethicality of the plan to protect your wealth, you need to consider another fundamental question first. Are you considering asset protection to defraud anyone? If you are already involved in a legal dispute and considering ways to hide your assets now, it may not be very effective.
Planning the protection of wealth is ethical, and effective, when you do it before facing any legal problem. Done at such time, and with proper legal advice and assistance, this could provide you with a good number of benefits.
Avoid becoming an easy target of lawsuits reducing the visibility of assets is an important objective of a good asset protection plan. Whether you have liquid assets, real estate properties or business, if these are difficult to reach, e.g., they are in a limited liability company owned by a trust, the creditor loses interest in suing you.
Hiding your assets would not work. What you need is a comprehensive plan to utilize devices that ensure protection of the assets you own. This is necessary for your as well as your dependants future needs.
Ensure financial privacy with the right entities. With the easy availability of information in todays world, financial privacy has become a luxury. This makes it easier for a compensation seeker or his/her legal advisor to find out all about your wealth. Create entities for
Asset Protection that ensure privacy, e.g. a trust arrangement.
Negotiate from a favorable position with a proper plan. Suppose you have considerable assets but within protective entities. This does not ensure that you would never face a lawsuit. However, the advantage is even if you lose a suit, the creditor may choose to negotiate a settlement rather than try to locate and gather profit from the assets.
Suppose you have your assets in a family liability company, and your creditor gets a charging order on it. If a family member is the general partner, he/she just needs to stop distributions. The creditor would not have any income from this but would have to pay the taxes applicable on it.
Ensure protection of as much wealth as possible with the capable guidance of a legal professional. The best plan is the one you would never need to use that is, it is so good that no entity finds you to be a good target for suing. For this, you would need to consult a lawyer specializing in this field.
The chief responsibilities of your lawyer would be to assess your requirements, analyze your circumstances, choose specific strategies, and implement the plan. He/she may also need to defend it in case any legal obstacle arises.
