Here is some information I got from DG on her Master Wealth Control. Would be interested to hear anyone’s (TerryW in particular) thoughts on this:

The purpose of the asset protection documentation is obviously to protect your assets from creditor’s claims. The protection comes from mortgaging your equity in ownership of your assets to a trust. Everything that you own or have an interest in is your equity. Ownership equals equity. Assets that you hold that are not subject to debt provide you with 100% equity. Assets that you hold carrying debt still give you equity on the basis that it is highly likely that the loan to value ratio is less than 100%. If you buy a house on an 80% loan, then you have a 20% equity in it.
There is no transfer or change of ownership involved in this, it involves you mortgaging your equity to a trust so that everything that you own is 100% under finance. Because your equity in your assets is mortgaged, or subject to a charge in favour of a lender (being your trust), then creditors cannot seize your assets to satisfy their claims. The debt claimed will not disappear, liability for payment will still remain, but it puts you in control of how to handle creditors rather than the creditors having unlimited choice on what to do with you to recover payment.

<edited by Moderator to remove Copyrighted information>

• This reply was modified 8 years, 2 months ago by  Benny. Reason: Remove copyrighted materials while establishing poster's authority to present it