What is Asset Protection
By Roccy M. DeFrancesco, JD, CWPP™, CAPP™ - 
Email Editor
Date: 19-Jan-2006
The open question to ask is: What is Asset Protection?
If you have been receiving e-newsletters from Robert Lambert and John Dietz of TrustMakers, then you should by now be getting a good feel for “core” Asset Protection problems and solutions. While you may not be aware of this, Robert Lambert is the best Asset Protection specialist in the country when it comes to “core” Asset Protection. I know this because my business is knowing who in the country is best in their field, and then recruiting them to help me educate other advisors through my CWPP™ certification course.
Core Asset Protection revolves around protecting yourself from future creditors who can sue you typically for negligence (although Rob's Asset Protection will also protect your wealth from the U.S. government, divorce and anyone else).
I've been added to the TrustMakers team to help educate readers on Asset Protection as I define it. My definition of Asset Protection is different than anyone else's in the country. My definition is:
“Asset Protection is protecting your wealth from anyone or anything that can take your money.”
Who does this include that you normally have not thought of before?
-The U.S. and State Government through income taxes.
-The U.S. and State Government through estate taxes.
-The stock market when it declines.
- Medical expenses like the inevitable long term care expenses everyone will have in retirement.
-The U.S. and State Government through capital gains taxes.
Think about it, who is your number one guaranteed creditor every year? The U.S. Government.
When the stock market in 2000-2002 went in the tank did you lose money? Is that more likely to happen in any given year than a lawsuit?
When clients pay $4,500 a month to stay in a nursing home, does that expense decrease their family's wealth?
Ask the same question for estate taxes and capital gains taxes.
If there were simple and legal ways for you to lower your income taxes, or invest in the stock market where you could receive the gains without fear of losing principal in down markets, or if you could mitigate your long term care costs, or if you could defer or avoid capital gains taxes when selling an appreciated asset, wouldn't you want to know about those solutions?
Those are just some of the topics I'll be talking about in my periodic e-newsletters. In addition to that, I consider myself a “domestic” Asset Protection specialist and will be helping TrustMakers educate you on how to use domestic planning strategies for Asset Protection. Offshore is always the best Asset Protection solution, but for those who want to explore the world of domestic Asset Protection, please look for upcoming newsletters as we will be covering that in great detail.
Thank you for your time and I hope you enjoy the upcoming newsletters. If you have a pressing problem with one of the topics listed above, please do not hesitate to contact me through TrustMakers at info@trustmakers.com
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ABOUT THIS EDITOR:
Roccy DeFrancesco, JD, CWPP, CAPP, MMB - Author and lecturer, Roccy specializes in advanced estate and asset protection planning. Roccy's passion is to teach advisors how to implement lawful strategies that will hold up for the test of time.
01 JANUARY
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