Proven Podcast: Episode Summary
Title: Lawsuit-Proof Your Fortune - Blake Harris
Host: Charles Schwartz
Guest: Attorney Blake Harris
Release Date: August 13, 2025
Description: Attorney Blake Harris discusses strategies for protecting assets from lawsuits, divorces, and creditors through offshore trust structures.
1. Introduction
In this episode of the Proven Podcast, host Charles Schwartz welcomes Attorney Blake Harris, the managing attorney at the nation's largest exclusively offshore asset protection law firm. Harris is recognized as a proven expert in safeguarding clients' assets from various legal threats through sophisticated offshore trust structures.
2. Understanding Asset Protection
Charles Schwartz (00:58): "An asset is something that somebody can take away from you."
Harris explains that in the realm of asset protection, an asset represents anything of value that can be seized in legal disputes—ranging from cash, stocks, bonds, crypto, to real estate. The primary goal is to protect these assets from court judgments by establishing robust legal structures.
Key Points:
- Assets vs. Liabilities: Assets generate income, while liabilities incur expenses.
- Protected Assets: Certain states like Florida and Texas offer complete home protection, and retirement accounts like IRAs and 401(k)s are partially protected.
- Strategy Development: For unprotected assets, Harris's firm devises strategies to make them inaccessible to creditors.
3. Common Legal Threats to Assets
Charles Schwartz (02:23): "Who are the people that are coming after your assets?"
Harris identifies the three most common sources of lawsuits:
- Business Disputes: Issues with employees, suppliers, or business partners.
- Divorces: The most frequent cause of lawsuits affecting asset distribution.
- Car Accidents: Increasingly common, though insurance has limitations.
Notable Quote: Blake Harris (04:30): "Divorce is actually the most common lawsuit, but in terms of asset protection planning, we see more business disputes followed by divorce."
4. Limitations of Domestic Asset Protection
Harris outlines the challenges of relying solely on domestic asset protection trusts:
- Legal Scrutiny: Prenuptial agreements and domestic trusts can be easily challenged and overturned in U.S. courts.
- Full Faith and Credit Clause: Requires courts to honor judgments across states, making it possible to penetrate domestic trusts.
Notable Quote: Blake Harris (09:45): "There have been many situations where these domestic trusts have been compromised. I don't believe that they are worthless. I do think that they provide a nice speed bump into slowing down a creditor."
5. Offshore Trusts: A Superior Solution
Harris advocates for offshore trusts, particularly those established in jurisdictions like the Cook Islands, Nevis, and Belize, which offer stronger protection against U.S. court orders.
Key Advantages:
- Non-Recognition of U.S. Court Orders: Offshore trustees are not obliged to recognize U.S. legal judgments.
- Higher Standards of Proof: Offshore jurisdictions require a criminal-level proof ("beyond a reasonable doubt") to penetrate trusts.
- Psychological and Practical Barriers: Increased distance and complex legal processes deter plaintiffs from pursuing offshore litigation.
Notable Quote: Blake Harris (10:54): "In the history of the Cook Islands, there's never been a time when a properly structured Cook Islands trust was penetrated."
6. Selecting the Right Jurisdiction
Blake Harris (13:50): "There are only three countries which have good codified case law, supported legislation which routinely, frequently, and gladly work with Americans."
Harris emphasizes the importance of choosing a jurisdiction with stable regulations, reputable trust companies, and a history of supporting American clients. The Cook Islands are preferred due to their transparent and safe financial environment.
7. Implementation Strategies
Harris discusses practical steps for setting up an offshore trust:
- Single vs. Multiple Trusts: Typically, one offshore trust suffices unless the client’s net worth exceeds $50 million.
- Equity Stripping: Transferring ownership of assets like real estate into an LLC owned by the trust to shield them from lawsuits.
- Funding the Trust: Moving assets into the trust involves transferring ownership rather than physically relocating assets.
Notable Quote: Blake Harris (19:24): "We've got Charlie's chocolate factory over here, which then has a lot of machinery in it... the operating company simply leases these assets."
8. Common Mistakes in Asset Protection
Harris highlights several common errors individuals make:
- Procrastination: Delaying asset protection until after a lawsuit is filed.
- Underestimating Needed Protection: Believing domestic trusts or basic legal agreements are sufficient.
- Improper Trust Setup: Using unqualified trustees or failing to properly fund the trust.
Notable Quote: Blake Harris (23:26): "Waiting too long... pre-planning next is simply thinking that you don't have enough assets."
9. Costs and Ongoing Maintenance
Establishing and maintaining an offshore trust involves significant costs:
- Initial Setup: Approximately 30 days to establish the trust and another 30 days to open a bank account.
- Annual Fees: Ranging from $5,000 to $10,000, covering trustee fees, protector fees, legal advice, and tax reporting.
Notable Quote: Blake Harris (40:29): "All you're looking at is between five and $10,000 a year in annual maintenance for an offshore trust."
10. Selecting the Right Law Firm
Choosing a reputable law firm is crucial for effective asset protection:
- Experience and Exclusivity: Firms specializing exclusively in offshore trusts are preferred.
- Reputation and Reviews: Positive client testimonials and a proven track record are essential.
- Transparent Pricing: Firms should clearly communicate their fees and the value they provide.
- Networking and Resources: A well-connected firm can provide comprehensive support beyond trust setup.
Notable Quote: Blake Harris (44:05): "Trust your brain, but also trust your gut as well."
11. Conclusion
Attorney Blake Harris underscores the importance of proactive asset protection to safeguard one's wealth from potential legal threats. By leveraging offshore trusts in jurisdictions like the Cook Islands, individuals can effectively shield their assets from lawsuits, divorces, and creditor claims. Harris emphasizes the necessity of working with experienced professionals to ensure the integrity and efficacy of asset protection strategies.
Final Thought: Charles Schwartz (48:40): "Winners take action to protect what they've built before they need it. Your assets are either protected or they're not. There's no middle ground when lawyers come knocking."
Contact Information: For those interested in implementing these asset protection strategies, Attorney Blake Harris can be reached through his firm’s website at BlakeHarrisLaw.com. The site offers various resources, contact forms, and access to his book on offshore trusts.
Disclaimer: This summary is intended for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized legal guidance.