A term used to describe a person or entity with a substantial amount of financial resources or assets, making them a potential target for litigation due to their perceived ability to pay large settlements or awards.
A fraudulent conveyance is the deliberate transfer of property to another person with the intention of putting it beyond the reach of creditors. Legal scrutiny under statutes like the Insolvency Act 1986 can result in such transactions being set aside by the court.
A court order preventing a defendant from dealing with specified assets to ensure that any judgment given against them will not be rendered ineffectual by their disposal or dissipation of those assets.
An internal check is a set of company policies and procedures designed to safeguard property from theft and damage. This includes measures such as the use of locked fences to secure outdoor property.
A comprehensive system of controls designed to facilitate orderly and efficient business operations, ensure adherence to management policies, safeguard assets, and maintain accurate and complete records.
An irrevocable trust is a type of trust that cannot be altered, amended, or terminated without the consent of the beneficiary or beneficiaries. It is typically set up to provide asset protection and tax benefits.
Judgment proof refers to individuals from whom a creditor cannot collect money, even if there is a court order stating that a debt is owed. This status typically applies to people who are insolvent or whose wages or assets are protected by state law.
A Mareva Injunction, also known as a freezing injunction, is a legal remedy granted by a court to freeze the assets of a defendant to prevent them from being dissipated or moved out of reach, pending the outcome of a legal action.
Personal liability refers to the legal obligation that exposes an individual's personal assets to potential claims. Corporate stockholders and limited partners generally avoid personal liability, while general partners incur personal liability.
A Qualified Terminable Interest Property (Q-TIP) Trust is an estate planning tool that ensures the surviving spouse receives income from the trust's assets while retaining control for the deceased spouse over the distribution of the assets upon the surviving spouse's death.
A secular trust is a variation of an irrevocable trust primarily used in nonqualified deferred compensation plans for executives, offering greater security as its assets are not subject to the claims of creditors.
Segregation of duties (SoD) is an internal control concept designed to prevent error and fraud by ensuring that no single individual has control over all aspects of a critical transaction or operation.
