Criminal Defense Lawyers

How can I prevent my assets from being seized unnecessarily?

Protecting Your Assets from Unnecessary Seizure

Having your assets seized can be a scary and frustrating situation. It may feel like your property or money is being taken unfairly or without justification. While asset seizure is a legal process, there are things you can do to reduce the chances of it happening unnecessarily. This article provides tips on how to keep your assets protected.

Understanding Asset Seizure Laws

Asset seizure, also called civil asset forfeiture, allows law enforcement to take cash, cars, homes, and other property that is suspected to be connected to criminal activity. The key is that the property itself is considered guilty, not the owner. That means police can seize assets even if the owner is never arrested, charged, or convicted of a crime.The legal basis for civil forfeiture is that the property was somehow involved in criminal activity, like drug trafficking or money laundering. But in practice, the standards of proof tend to be pretty low. Law enforcement only needs to show there is a preponderance of evidence pointing to illegal activity, which is a much lower bar than the beyond a reasonable doubt standard used in criminal cases.This article from the ACLU provides an in-depth look at how asset forfeiture laws are often abused and misused by police departments. While the intent may have been to fight organized crime, forfeiture has become a revenue generator for law enforcement. There are many examples of people having cash, cars, or homes seized without any evidence of wrongdoing.

Avoid Carrying Large Sums of Cash

One of the most common triggers for civil forfeiture is carrying what police deem to be a “suspicious” amount of cash. There is no defined threshold, but in general having more than a few thousand dollars in cash on you is likely to raise eyebrows.Law enforcement tends to view large cash amounts as indication of illegal activity, like drug dealing, even if there is no actual evidence to support that. To avoid potential seizure, it’s better to not travel with large cash amounts unless absolutely necessary.Some tips:

• When possible, use checks, credit/debit cards, or wire transfers rather than cash for large transactions.
• If you must travel with significant cash, keep documentation showing the source of funds and reason for transport. For example, receipts from the bank or ATM where it was withdrawn.
• Carry cash in a bank envelope or sealed package rather than loose bills. It looks less suspicious.
• Do not consent to police searches of your cash, car, bags, or other property without a warrant. Politely refuse and state you do not consent to any searches.

Be Careful When Depositing Cash

Similar to carrying cash, making large cash deposits can also prompt scrutiny from law enforcement. Banks are required to report cash deposits over $10,000 to the federal government, so unusually large deposits may lead to investigation even if the funds are legitimate.Some ways to avoid issues when depositing cash:

• Deposit in smaller amounts over time rather than one large deposit. For example, make several $2000 deposits over a few weeks rather than $10,000 all at once.
• Notify your bank ahead of time if you need to make an unusually large cash deposit, and provide documentation showing the source of funds.
• Only use reputable banks and credit unions rather than sketchy check cashing services or cornershops offering money orders. Stick to established, mainstream financial institutions.
• If asked, be cooperative and truthful when explaining cash deposits to bank staff or law enforcement. Lying will only increase suspicion.

Keep Records for Valuable Assets

Documentation is key if you own valuable assets like cars, jewelry, art, or other luxury items. Keep records proving how the items were obtained and paid for through legal means.Important documents include:

• Receipts showing purchase price and payment method.
• Registration paperwork like vehicle titles or deed records.
• Appraisals documenting the item’s value.
• Insurance documents covering the asset.
• Shipping records if the item was imported from overseas.
• Wills, estate paperwork, or gifts showing how inherited valuables were obtained.

Well-kept records make it easy to establish an item was acquired legitimately if questions ever arise. It also shows you have made efforts to document your high-value possessions.

Avoid “Suspicious” Transactions

Some types of financial transactions tend to raise red flags even if the funds are legitimate. Conducting a lot of business in cash, moving money between accounts frequently, or transferring money overseas can prompt investigation.Tips to avoid questionable transactions:

• Use traditional bank accounts rather than prepaid debit cards or crypto wallets, which are easier to conceal.
• Make larger purchases like cars and real estate through normal financing rather than all cash.
• Don’t frequently withdraw or deposit cash without good reason.
• Don’t wire money abroad to countries considered money laundering risks.
• Don’t make cash transactions over $10,000, which banks must report.
• Avoid shady transactions like smurfing (breaking deposits into smaller amounts) even if trying to avoid paperwork.
• Be transparent about sources of income and reasons for transactions. Lying or obscuring details will backfire.

Select an Asset Protection Strategy

For valuable assets like real estate, an asset protection trust or LLC can help shield it from seizure.A spendthrift trust protects property from creditors by placing it under control of an independent trustee. A beneficiary can access trust funds at the trustee’s discretion, keeping assets out of their personal ownership. This structure makes the trust property much harder to seize.Placing assets in a limited liability company (LLC) can also limit exposure. LLC ownership is separate from your personal assets, so only the LLC’s assets are at risk in case of a lawsuit or seizure. This creates a legal firewall around property like real estate or business assets held by the LLC.Professional legal advice is recommended when establishing trusts or LLCs to ensure they will achieve your asset protection goals. Proper setup is crucial.

Purchase Forfeiture Insurance

Forfeiture insurance is a specialty policy that provides coverage in case assets are seized by law enforcement. The insurance company will appoint legal counsel to fight for return of your property and reimburse any losses up to the policy limit.This Forbes article discusses how forfeiture insurance from companies like Attorney Asset Protection works. Premiums vary based on factors like assets to be protected and level of risk.Forfeiture insurance provides peace of mind and can help level the playing field when challenging unjustified seizures. The right policy mitigates the downside risk if law enforcement targets your property.

Seek Legal Help if Assets Are Seized

If assets are seized despite precautions, quickly retaining legal counsel is critical. Skilled forfeiture attorneys can advise on options to seek return of your property.An experienced lawyer will immediately address filing deadlines, procedural requirements, and strategies to challenge the seizure. This article from Nolo discusses the complex process of fighting civil forfeiture.Early intervention by a qualified attorney maximizes the chances of successfully reclaiming your seized assets. Don’t delay in seeking legal help.

The Bottom Line

Unjustified civil forfeiture affects thousands of Americans each year. While risks can never be fully eliminated, following these tips will help protect your property and reduce chances of seizure.Being cautious with cash, documenting assets, avoiding suspicious transactions, and retaining legal counsel if needed are all wise precautions. With the right planning, you can add layers of protection around your hard-earned assets.

Resources

Articles on Asset Forfeiture Laws and Abuses

• Asset Forfeiture Abuse at the ACLU
• Forbes: Asset Forfeiture, Explained
• Cato Institute: Forfeiture Laws Policing for Profit

Videos on Protecting Assets

• YouTube: Asset Protection Strategies
• YouTube: Asset Protection Trusts Explained
• YouTube: Tips to Avoid Civil Forfeiture