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The Chess Board Of Asset Protection

By John Dietz - Email Editor

Date: 17-Jan-2006

Properly implemented Asset Protection is the process of taking baby steps over a period of time to help eliminate or alleviate risk of a creditor attack. The dictionary defines a creditor as “a person or organization owed money by another.” Sounds rather sublime if you look at the words, unfortunately, creditors are anything but sublime. They come in all varieties, from all directions and sometimes in multiple salvos. In general, I would say from places you would never suspect.

Have you ever heard of a realtor, when closing, talk about property liability?
Have you ever heard a boat salesman mentioning watercraft liability?
Have you ever heard an insurance agent explain your liability above and beyond your policy?

Well, you get the point...

Much like adding a new piece of equipment to an assembly line in a manufacturing facility, Asset Protection should be a new part of your business plan. Each business endeavor has its sets of rules, regulations, schematics, floor plans, details and so on. One of the integral parts of that business should be Asset Protection.

Asset Protection is never the number one criteria for doing a business deal, but it should be in the top five. Here’s why: Let’s say you found a good business deal, and you can profit more than your wildest imagination; the only problem is if you get sued, and it’s likely you will, the possibility of losing everything is real.

In fact, lawsuits are like selling a stock short. On a normal stock trade, the worst that can happen is that your stock will go to zero and you will loose all of your money on that trade. On a short sell, the stock could keep climbing forever. Meaning there could potentially be a never-ending downside. A lawsuit can be similar to a short sell in the stock market. Ask yourself, does Robert Blake have $30 million?

For the want of a nail, the shoe was lost;
For the want of the shoe, the horse was lost;
For the want of a horse, the rider was lost;
For the want of the rider, the battle was lost;
For the want of the battle, the kingdom was lost;
And all for the want of a nail.”
-Benjamin Franklin

Preserving wealth has never been a one-time event; it is a series of calculated moves on the chessboard of life and business. These small baby steps can add up to a sizeable net worth through prudence and time.

I would like to take time out for a brief commercial: At Trustmakers, we are committed to giving you up to date, real world Asset Protection strategies. We are also committed to bringing you the best people in Asset Protection related fields.

We will start by interrupting Rob’s regularly scheduled Thursday newsletter to bring you an expert in the field of wealth preservation. On occasion we will showcase someone who is head and shoulders above the rest. Roccy M. DeFrancesco, Jr., JD, CWPP™, is the President of The Wealth Preservation Group, LLC, (WPG), The Wealth Preservation Institute and the creator of the Certified Wealth Preservation Planner (CWPP™) designation. Roccy is considered by colleges and business associates as “the guy in the know.” For a complete biography, click here.

Thursday's newsletter will shed light on the ever present changes affecting your estate.

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