Living as an assetless person?

Is it possible to have money and assets and living as an assetless, at least in appearance? We explain how and why to live as an assetless person

The control plan, in place for 2030, will force us to live as assetless. They want no one to own their house, car and even appliances anymore: everything will be rented or a similar formula.

Rapper Fedez, during an investigation conducted by the Milan Police in Italy on a defamation charge against the consumer association Codacons, said that his “registered movable and immovable property” is owned by his companies, declaring himself to be effectively “assetless.”

This statement provoked many reactions, quickly becoming the subject of controversy and memes on social networks.

I recommend that you read the entire article and not skip to the section on how to live as a null-tenant, but comfortable, so that you understand why, how, and when to take the necessary steps.

The sharing economy

The sharing economy is an economic model that emphasizes shared access to goods and services rather than individual ownership.

The popularity of this economic model has grown with the rise of digital platforms that facilitate the sharing of cars, homes, and other assets. This approach not only offers practical benefits, such as reduced costs and increased efficiency, but is also seen as a way to reduce environmental impact, promote more sustainable resource use, and foster greater economic equity.

The sharing economy is supported by figures such as Rachel Botsman, Yochai Benkler, Jeremy Rifkin, and Juliet Schor. Rifkin is known for his work on the “Third Industrial Revolution,” where he predicts an economy based on renewable energy and asset sharing, while Schor explores the implications of this economic model on labor and consumption. These authors and many others see the sharing economy not only as an economic shift but also as a catalyst for social and environmental change, proposing that shared access to goods can lead to a more equitable and sustainable society.

Among the tycoons who have embraced and promoted aspects of the sharing economy are the likes of Elon Musk and Richard Branson. Musk, through initiatives such as Tesla and SolarCity, has championed the idea of sharing technology and infrastructure resources, especially in the context of electric mobility and renewable energy.

Branson, with Virgin Group, has explored various business models that include aspects of sharing and cooperation, extending the idea of the collaborative economy to sectors such as travel and hospitality.

Both see sharing not only as a business opportunity, but also as a way to address some of the environmental and social challenges of our time.

Why living as an assetless person?

Legally, the term “no income earner” refers to a person who has no income of his or her own and no personal property. This status implies the absence of a regular job and personal financial or real property. This condition is significant in that it prevents the state from executing measures such as asset forfeiture or garnishment, as these would be fruitless actions.

The use of this term by a public and financially well-off figure like rapper Fedez may seem contradictory: is it possible to live as a no-account with a luxurious lifestyle? Surprisingly, the answer is yes.

But why would I live as a noblesse oblige if I earned the money so I could spend it? Simple, because living as an assetless does not mean living in poverty, just having nothing to lose, at least in appearance. Of course, this involves sacrifices, for the greater good: protecting your assets and the fruits of your labor.

This should be your philosophy of life from the beginning of your working life. Concealing your assets and money later almost always leaves traces and has a greater cost. So consult us now and be prepared: as soon as you start earning money you are under attack!

An old Neapolitan proverb says, “tre songo ‘e potenti: ‘o papa, ‘o re e chi nun tene niente,” meaning, three are the powerful: the pope, the king and those who have nothing. The king and the pope have been replaced by the great economic powers that control the world. Those who have nothing are still powerful today!

What does assetless means?

The term “assetless” refers to a person who holds no property, especially in taxation, indicating one who is not subject to taxation on land or real estate. In a broader sense, it describes one who is in need, without means or in poverty.

Assetless, when referring to taxes and debts, refers to a person against whom creditors cannot take effective action to recover amounts due. This status implies that there are no additional punitive consequences beyond enforcement actions in the case of nonpayment of debts.

Despite this, being assetless does not necessarily mean being completely without resources. By law (which obviously changes from country to country), some assets cannot be subject to foreclosure, others can.

The situation is worse for those who owe debts to the state treasury, since the rules regarding garnishment are stricter than those applicable to debts owed to private individuals.

When a person defaults on his or her financial obligations and fails to make agreed-upon payments by the due dates, he or she may face legal measures from the creditor. These may initially include friendly reminders, followed by court actions such as injunctive and writs of execution, aimed at forcing the debtor to settle the debt to avoid adverse consequences.

The creditor can also seize the defaulting debtor’s assets, such as land, houses, or other real estate, and proceed to sell them at auction to recover the money owed. Alternatively, it is possible to garnish wages, pensions or checking accounts, and in some cases even insurance.

However, the situation becomes more complicated when dealing with a person who is defined as an assetless. A nullatent, in common and non-technical terminology, is an individual who has no attachable assets and receives no income.

The assetless has nothing to lose

If a creditor is assetless, it makes it virtually impossible for creditors to recover sums through garnishment.

In such cases, the creditor has few options and can only hope that the debtor’s financial situation will change in the future, thus allowing future recovery actions. It is important to note that the opportunity to take action to recover the debt expires, but this deadline can be interrupted by sending a new default notice.

Thus, a debt incurred by an individual does not necessarily fall under the statute of limitations if the creditor periodically intervenes to keep the claim active, thus preventing the statute of limitations from expiring.

In addition, the debt may persist even after the death of the defaulting debtor, as financial responsibilities may be transferred to the heirs who have accepted the inheritance, either expressly or tacitly.

In this situation, the creditor can proceed to seize the assets of the heirs without the need to initiate new legal proceedings. Therefore, even if the original debtor was without assets, the same cannot be assumed for his family members.

In addition, the creditor has the option of bringing a revocatory action, which aims to invalidate sales or gifts made by the debtor to evade forced debt recovery. This action can be brought within five years of the disputed act and requires a showing of bad faith in the execution of the bargain.

Creditors may seek to expose the assetless debtor

In dealing with situations in which a creditor is faced with a debtor apparently without assets (assetless), there are several strategies that investigative agencies recommend to try to recover the debt.

It is important to note that so-called “assetless” may have made maneuvers to conceal their assets, especially if they opted for the assetless strategy after incurring debts.

In such cases, investigative agencies track possible dispossessions or transfers of property or hidden assets.

Here are some strategies recommended by investigative agencies to deal with situations of assetless debtors:

Revocatory action: it is recommended to check with the Land Office Real Estate Registrar or the Internal Revenue Service for a historical mortgage view. This will allow reconstruction of the debtor’s ownership changes and detect any donated property.

Marital property regime: check to see if the debtor is married under a community property regime, which allows the 50% shared assets to be attached. In case of apparent separation, a sham can be assumed and challenged.

Assets abroad: check through tax returns whether the debtor has assets or accounts in foreign banks.

Rental property: if the debtor lives in a rented apartment, a movable attachment can be made of the items and furnishings there, assuming they are his or her property.

Waiver of inheritance: check whether the debtor has waived inheritance to escape foreclosure. The law allows the waiver to be challenged if the reason is suspicious.

Other checks: make sure of the presence of checking accounts, cars, insurance policies, or sources of income such as paid work or pensions, which may be seized.

How to live as an assetless person, but comfortably

If you have convinced yourself to live as an assetless in order to protect your assets from possible creditors, including a money-hungry treasury, or complaints from family members, you must do so promptly and trying to leave no trace behind. Otherwise it is all in vain.

If you do not protect your assets while you are setting them up, making a plan for dispossessions or transfers of property or hidden assets can be costly.

The first thing to do is to transfer your personal assets to a foundation. This offers more advantages than a corporation that has legal restrictions. In any case, to eliminate the traces, it is important to make smart use of the foundation’s assets and funds. The Caporaso & Partners law firm can help you every step of the way.

Panama’s private interest foundations are an effective means of protecting and managing assets confidentially and securely. Through these structures, assets are technically separated from those of the founder or beneficiary, operating as an independent entity. This is critical to ensure that assets are not subject to personal or legal risks that could affect the founder or beneficiary themselves.

The foundation thus acts as a legal custodian of the included assets, managing and disposing of them according to the guidelines set out in the foundation’s regulations, without them appearing in public records. This anonymity is further reinforced by the fact that the foundation board can act on behalf of the beneficiaries who can live like an assetless because they remain anonymous.

Private interest foundations in Panama are structured to provide effective asset protection. In this way, the assets included are generally not exposed to risks such as attachment or seizure for debts or other personal liabilities of the founder or beneficiaries. This security is one of the most significant advantages of foundations.

How is a Panama foundation administered?

The administration of a private foundation in Panama requires the formation of a foundation board, which is typically provided by the law firm. This configuration allows for a high degree of privacy for the beneficiary, who can live as a no-income earner. The foundation retains flexibility in the administration of assets and estate planning, including the power to exclude certain heirs or specify nontraditional beneficiaries, as in the case of bequests to non-family entities or friends.

The tax implications of Panama’s private interest foundations are significant, as they allow taxes to be avoided or minimized, provided such income is obtained outside Panama’s territory. The tax advantages, combined with the relatively low costs of forming (EUR 2,500) and maintaining the foundation (EUR 1,050/year), make this instrument particularly attractive to those seeking to protect their assets in an international context.

Private interest foundations offer a solid asset protection barrier and great flexibility in asset management, while maintaining strict control over the privacy and security of beneficiaries’ personal and financial data.

Using a Private Interest Foundation in Panama to acquire assets abroad or to open international bank accounts is a widely practiced option. These foundations are frequently employed to manage assets, arrange estate plans and protect financial assets.

To ensure the anonymity of beneficiaries, foundations may act through proxies issued to lawyers or accountants operating locally. These proxies are, generally limited, to specific purchase transactions, avoiding sale transactions, to maintain tight control of assets.

Under current regulations in Panama, if information about the operations conducted by a Private Interest Foundation is disclosed, those responsible are subject to legal consequences, which include penalties in both the civil and criminal fields.

But if I am assetless person who owns my assets?

In a Private Interest Foundation in Panama, the concept of asset ownership breaks away from the traditional concept associated with individuals or corporations. Within this structure, the assets transferred to the foundation become the property of the foundation itself, which is considered a separate legal entity.

This implies that although the founder transfers the assets, they do not remain his or her property or that of the beneficiaries or members of the foundation board.

The beneficiaries have a conditional right to the assets, based on the provisions of the foundation deed, but they do not become the owners of the assets until they are distributed in accordance with the rules of the foundation. Therefore, it is the foundation itself that legally owns the assets, acting in the interest of the beneficiaries designated by the founder.

Although the founder may be one of the beneficiaries, this is not a necessary condition; a named founder, usually a legal corporation, is often used to protect the identity of the true beneficiaries.

This configuration offers flexibility and is one reason why such foundations are popular for estate planning and asset protection. The founder has the freedom to designate beneficiaries through the deed of trust, which may include himself, family members, friends, or charitable entities.

In addition, the founder, the Protector (if appointed) and members of the Foundation Board are subject to strict safeguards that prevent them from appropriating foundation assets unless they are explicitly designated as beneficiaries.

In the context of banking and investment operations, identification of the beneficial owner (UBO) is crucial for banks for compliance and financial transparency.

This balance between direct control and delegated management ensures that asset management remains in line with the wishes of the beneficial owner while complying with security procedures and applicable regulations.

Do you want to live as an assetless person? Consult us.