So lets see if I got this straight.
- You are inducing people to hide assets they don't want to report in your safe deposit boxes.
- If the assets were to be pilfered, you say their recourse is to try to collect from their homeowner's policy (for an asset they never admitted having).
- One certainly wouldn't report a theft to police for assets one is hiding.
I must congratulate you, you have concocted the plan for the perfect crime. Just have to decide what day is the day to lock the doors.
BTW, remember, just being the devil's advocate.
Asset protection is not a crime, nor is having financial privacy.
Clients may use our safe deposit boxes for a number of reasons: Protection from federal tax liens, state tax liens, alimony, child support, mechanics liens, bankruptcy, civil judgements, as well as other creditors.
Due to the lottery style court cases and judgments that exist today, a well drafted asset protection plan can go a long way in deterring a creditor. If you can avoid the appearance of being the “deep pocket” then you can frequently be passed over and the creditor will look to someone else. In fact deterrence is a major part of asset protection and Banker Trust can be used to serve this purpose. The plaintiff is generally unwilling to mount countless attacks against a defendant who has a well established asset protection plan. Judgment creditors are cost conscious and if the efforts to collect are just too difficult, then that creditor is likely to settle for far less than the amount of the judgment or move on to easier pray.
A homeowner's policy is the standard way to protect the contents of a safe deposit box. There are riders in policies which spell this out. Identifying the contents of a safe deposit box on your homeowner's policy is not public information, unless you make it so.