Asset Protection IS NOT.

Date: March 30, 2006

I hope you are well and protected. If you have been following and listening to my advice, you are.

In this little world that I live in which revolves around Asset Protection planning, I seem to spend way too much of my time debunking myths and telling people what Asset Protection is NOT. This is because most of the scammers and crooked planners (which are 9 out of 10 of the “experts” out there) advocate something appealing and easy to sell, which is often ineffective and sometimes down right crooked.

Read this list, and if any plan you are thinking of implementing involves an item on this list, run from it, as you are about to make a major mistake.

LAWSUITS: Asset Protection will not stop lawsuits. There is no such plan that “stops predators in their tracks.” All solid planning of any type does is remove the economic incentive to litigate. It does not stop the suits. At best, a solid plan will give you a tool to favorably settle a suit.

TAXES: No Asset Protection Plan will save you income taxes. Yes, any decent Asset Protection planning can be combined with income tax planning. However, that is secondary. If a promoter of any plan promises to save you taxes with some phony pure Trust or offshore account scam RUN because you are in the hands of a scammer and most probably also being advised to commit a crime.

KITS: All decent Asset Protection is personalized. There is no such thing as a $2,000 (or $25,000) kit that will protect you. Asset Protection is like dental work: If your bite is off on your jaw, life will not work. Never buy a self-help kit or some one-size-fits-all plan. I guarantee it will NOT fit you, no matter what your circumstances. In the same way, stay away from self-help seminars.

STEALTH: Stealth is good and it helps. With that said, STAY AWAY from plans which rely on stealth or which force you to lie (like most Nevada corporations or bearer share scams). You should always be able to stand up and tell the truth. Your plan should work whether or not your entire plan is discovered and is in the hands of an opponent.

ADVISORS: Always involve your lawyers and accountants. If you have personal advisors, then get them to help with the implementation of any plan. A personal lawyer is like a family doctor. He or she needs to know what is going on and should be involved. If an expert asks you to exclude your advisors, then you are in the hands of a shady character.

THE CONSTITUTION: Don’t forget the Full Faith and Credit Clause of the U.S. Constitution. Some untested law in Delaware or Nevada or anywhere is not likely to prevent the enforcement of some sister state judgment. If some advisor tells you it will, then get this in writing and make sure that they have insurance.

REFERENCES: Always check several references from both past clients of your chosen “expert” as well as from lawyers and/or accountants who have personal experience with the particular planner or plan you are thinking of implementing.

TRUST: Trust no one, not one single person with your hard earned savings. If some planner wants to send your money off to some far away and unknown trust company, RUN. The “expert” will simply use a form trust provided by some trust company and charge you as big a fee as they think they can get away with. The truth is that in almost every case structured on the Kinetic Asset Protection Trust model, you can safely maintain a comfortable level of involvement with your protected assets as long as the financial seas are calm. A solid plan implemented before the storm hits will almost never put you in a position where you are forced to trust any person or entity with your assets. NEVER do this because you do not have to.

DON’T BE PENNY WISE AND POUND FOOLISH: Good planning costs money. If you can’t afford the whole enchilada on day one, there are still small steps that you can take which will help. Don’t fall for any of the one-size-fits-all mass produced plans sold at a huge discount. Honestly, to do a plan correctly it takes time, training and hard work.

Finally remember, if it sounds too good to be true in the Asset Protection world, it most certainly is.

Keep your eyes open and be informed. Hopefully you will avoid being hurt.

ABOUT THIS EDITOR:

Rob Lambert, Founder and former law professor is considered to be foremost expert on tax compliant asset protection structures. A contributing editor to Lexus Nexus debtor creditors series of law books Rob's passion is implement client wealth plans that stand the test of time and hold up under duress.

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