The Principle of Own Nothing Control Everything: How to Protect Your Assets

Last Updated on December 25, 2022 by Selina Parker

It is more important than ever to protect all your assets in a world where they can be quickly seized and judgments can be made against you without your knowledge. The principle of “own nothing, control everything” is the essence of the family-limited partnership.

This article will discuss this principle and how you can use it to protect your assets.

Own Nothing, But Control Everything

Own nothing, control everything is a phrase credited to John D. Rockefeller, one of the wealthiest men in history, a business magnate, and a philanthropist. This is a fundamental principle in asset protection.

The principle is simple: own nothing, but control everything. Because what you don’t own, they can’t take away from you.

In other words, don’t own any assets outright. Don’t have legal ownership of personal assets to protect them from creditors.

Instead, own your assets through a legal entity, such as a corporation or a trust. You can still control your assets but do not legally own them. And if someone sues you, the only thing they can seize is the legal entity that owns the asset—not the asset itself.

What you own, you should own through a legal entity such as a trust, LLC, or corporation. If someone sues you or gets a judgment against you, they can’t go after your assets because you don’t own them.

However, this principle is not a foolproof way to protect assets. There are ways that creditors can get around this, such as piercing the corporate veil or using a fraudulent conveyance.

But if you use this declaration with other asset protection strategies, you can create a solid asset protection plan.

The Problem With Own Nothing Control Everything

Tax Implications

This age is no longer the same as Rockefeller’s. Some bureaus will try to tax you on the income of your holdings, and automated financial transactions allow governments to obtain more reporting on what your assets are and assist them in pursuing those assets in other nations.

It’s much more challenging to get away with something or beat the taxman if you try to own nothing and control everything. Even countries you wouldn’t think have suitable tax authorities are doing a decent job pursuing people.

The misconception is that you’ll deposit the cash in someone else’s name and not report it – they’ve already addressed that.

In the case of FACTA and US persons, you must declare accounts in which you have a beneficial interest or signature authority. You must report your money if it is truly yours. That is precisely what the law specifies.

Your privacy isn’t protected.

It’s getting more difficult to maintain some degree of opacity, in which you’re the owner of a firm, but no one knows it. Many corporate registrars are now opening their doors to foreign companies, disclosing previously confidential information.

With almost everyone and everything linked, and more nations embracing business registrations, it’s getting harder to conceal anything. Many nations that have previously allowed tax havens are now making it more difficult for you to establish a sizable economic presence in their country. There are several new rules to adhere to, which only adds to the difficulty of trying to own nothing.

It cannot protect your assets.

People often assume that if they own nothing, their assets are safe. However, this is not the case. If you own nothing and control everything, your creditors can still go after your business entities and freeze their assets.

While it may be more difficult for them to do so, it is still possible. It may even be easier in some cases because you have less protection. They own nothing, control everything principle is not a foolproof way to protect your assets.

It’s important to remember that this principle is only one tool in your asset protection arsenal. You should always consult with a qualified asset protection attorney to ensure your assets are appropriately protected.

It’s getting more challenging to own nothing and control everything. With new laws and increased transparency, it’s important to remember that this principle is only one tool in your asset protection arsenal. You should always consult with a qualified asset protection attorney to ensure your assets are appropriately protected.

It’s important to remember that this principle is only one tool in your asset protection arsenal. You should always consult with a qualified asset protection attorney to ensure your assets are appropriately protected.

Final Words

It cannot be denied that the own nothing control everything principle has worked for many people in asset protection. However, there are also those who have lost everything because of it. The best way to protect your assets is to consult with a qualified asset protection attorney. They can help you create a comprehensive plan that takes into account all of your unique circumstances.

Don’t forget, own nothing control everything is not a foolproof strategy. There are always risks involved. But if you work with an experienced asset protection attorney, you can minimize those risks and give yourself the best chance of protecting your assets.