Staying Healthy

Dr. Mike Evans, founder of the Health Design Lab at the Li Ka Shing Knowledge Institute, illustrates in a powerful video the single most important thing we can do as human beings to live longer and enjoy life. All it comes down to is exercising 30 minutes a day in addition to drinking and smoking less. In our society, we live under deadlines and have no time for a personal life in such a face-paced environment. If, however, you can check Facebook or watch your favorite TV show, then you have time to do the most important thing to help you live longer.  Make sure to check with your doctor before you start any exercise routine.

What You Need to Know About No-Fault Laws

 Following up on our theme of asset protection, one area people don’t often consider is how to properly form a domestic asset protection trust when it comes to a vehicle. This factor obviously doesn’t come into play with an offshore trust, only when forming an asset protection trust domestically. When it comes to vehicle accidents in the United States, each state has its own rules regarding how compensation for damages is paid out. Read on for a brief overview of automobile accident legislation, no-fault laws, compensatory damages, beneficiaries, trustees and more as they are applied across the country and in Florida, and remember to go over these laws with an auto accident injury attorney in more detail:

No-Fault Basics

A no-fault law mandates that all involved parties will receive compensation for damages from the insurance provider covering their vehicle, regardless of who was at fault, or what legal structure owns the vehicle e.g. in a trust or llc. Keep in mind, however, that this only pertains to any personal injuries sustained. Vehicle property damage must be taken care of by the insurance company of the at-fault driver. This strategy ensures business assets are protected.

The intent behind the no-fault law is to decrease the frequency of lawsuits between drivers and increase the efficiency with which payments are made to injured parties. This also obviates the need for an asset protection trust because the “at-fault” driver will not be subject to creditor claims. To prevent the complete physical and financial ruination of car accident victims, states with no-fault laws usually allow lawsuits to be made if a certain verbal or monetary threshold is met. Examples include death, dismemberment, permanent injury, or excessive medical expenses.

Important Florida Requirements

Florida is one of several U.S. states that has instituted a no-fault law and has included the following stipulations in an effort to keep drivers protected from ruination in the wake of an accident. Everyone has been a beneficiary from this policy. It’s interesting to note a small cottage industry had been built up in Florida. Rich persons would form offshore trusts and bank accounts that “owned” their cars. Thus, any accident could not be linked back to the owner for damages or claims against their assets.

  • All vehicles must be registered and licensed.
  • All drivers must have at least $10,000 of personal injury protection and $10,000 of property damage liability coverage.
  • All permanent residents must have year-round auto insurance, while part-time residents of at least 90 days must satisfy the above coverage requirements for the duration of their stay in the state.

Navigating your way through these legal requirements can be difficult, especially after being injured in a car accident. We used Florida as an example because many individuals there maintain offshore asset trusts due to their proximity to the Bahamas,  Cayman islands etc.

If you are in a no-fault state, then you don’t need to worry about protecting your assets from an egregious auto accident lawsuit. Getting these details right is a lot easier than forming a domestic trust and potentially just as time saving!


The materials available at this website are for informational purposes only and not for the purpose of providing legal advice on protecting assets. You should contact your attorney to obtain advice with respect to any particular issue or problem, especially for domestic asset protection trusts. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Asset protection strategies are provided for information only purposes, as are family asset protection trusts.

Protection Through Diversification

When you first the see the video I know you’ll have mixed feelings. This is because Cramer’s personality is fairly divisive. People tend to either love him or they hate him, with not a lot of in-between. However, regardless of your personal thoughts, I have to admit the guy really knows his stuff.

The video at the bottom of the page essentially covers two topics, diversification and “doing your homework”, both of which are equally important, but for different reasons.

The concept of diversification is fairly simple,  but can trap those who try for a cursory understanding. Diversification is merely owning a variety of stocks across several industries so that your risk is not entirely concentrated in one sector. So, owning Spring, T-Mobile, AT&T and Verizon is NOT a diversified portfolio. You merely own four telecom stocks. Owning  telecom, aerospace, bank and retail stocks would be an example of diversification.

Doing your homework refers to engaging in proper research before, during and AFTER you own a stock. Research being reading analyst reports from S&P, Morgan Stanley or any of the other many analyst companies. And then also listening to EVERY recent quarterly conference call held by management.

You want to do this before you buy, for obvious reasons. Then you also want to do this when you own the stock because this keeps you well informed. Then, surprisingly, you’ll want to stay informed after selling the stock. Given you know the company pretty well, there could be the chance to buy the stock again, or even short it, depending on what occurs after you sell.

Before finishing, above I mentioned that diversification throws people off. This is because diversification is not the same as the concept of asset allocation. Yes, the above portfolio would be a diversified holding of stocks, but all you still own are stocks. You don’t have other assets such as gold or bonds, which tend to be uncorrelated. So, you are protected from general market gyrations, but are still fully exposed to the vagaries of the market.


  1. Do your homework
  2. Diversify your portfolio
  3. Own more assets than just stocks, and protect them too!

Structured Settlements vs. Lump Sums

Do you ever day dream about winning the lottery? Or maybe getting lucky and striking a big insurance claim? Well, chances are you’re familiar with the options of receiving a lump sum or a stream of payments that is meant to be of equal value, but spread out over time. As tempting as it is to take all the money at once, I believe:

Life insurance companies, which often issue settlements structured as annuities, are subject to strict regulations and are evaluated for their financial strength by independent rating agencies. They also maintain rigorous capital and reserve requirements. When providing injured persons with a tax-free, guaranteed income stream tailored to meet their needs, structured settlements will continue to offer unique advantages.

Safe Regulated Safeguards

Insurance companies are regulated by each state in which they do business. The number one goal of state insurance regulators is to protect policy holders by ensuring that insurers are financially sound and able to pay
claims on the policies they issue. State insurance laws require that all insurers establish reserves for every obligation they assume. In fact, each of the state-mandated safeguards helps enhance an insurer’s ability
to pay claims and helps protect policy holders.

Read more

Rich Dad – Poor Dad

I really enjoy this video. It’s from the author of “Rich Dad, Poor Dad”. It’s a wonderful book which describes some personal finance secrets for earning and keeping your assets. In this particular video, Robert Kiyosaki describes some of his asset protection techniques to deter lawsuits. He has made MILLIONS of dollars and, if we believe him, is a common target for lawsuits.

While not entirely relevant to our asset protection theme, he also goes over the current state of the legal system. I find it pretty interesting. He says it has nothing to do with fairness, but whether you can afford to defend and represent yourself. This is why it’s important to get good advice. Having good intentions isn’t enough to protect yourself. Anyway, listen to the video for more good advice.