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A Man Convinced Against His Will.

By Rob Lambert - Email Editor

Date: Aug 17, 2006

"A Man convinced Against His Will is of the Same Opinion Still."

Sometimes I feel like a voice crying into the wilderness. We are blessed with more than 15,000 subscribers to this newsletter…and every week we try and give each and every reader something solid and reliable.

With that said, fully one out of two of the people who contact us are after something that is a scam. To hopefully cut this off at the pass, I want to outline the six most common requests we receive. The following are the most ineffective, yet most promoted Asset Protection techniques for the uninformed. None of these work, and each must be avoided.

The list of the most ridiculous Asset Protection steps are:

1. Pure Trusts:
Pure Trusts are promoted by scammers who do not understand what the Internal Revenue Code, the Constitution or the Supreme Court says. These folks argue that the ability of the Federal Government to tax us is unconstitutional. They have lots of complicated arguments that sound sophisticated. What they miss is that the Supreme Court, and each and every Circuit Court, has upheld the income tax. It is neither unconstitutional nor illegal. Yes, our tax code is illogical, sickening and unfair…but it is the law. We have to pay our taxes…and making yourself some sort of “sovereign” individual or other ridiculous classification will not remove the burden to pay taxes. Unfortunately, we all have to pay them. Pure Trusts are Pure Fraud.

2. Give It To The Wife:
This is another silly misconception. In many states it makes no difference. In all circumstances, it changes the balance of power in a marriage. It is always a mistake to give your stuff away to your spouse with the expectation that this will keep your assets out of the hands of a creditor. The most likely outcome is that your spouse will realize that she (or he) is now in control. Divorce often follows.

3. The Fake Loan:
This is one of the worst. A fake loan from a friend. Often the loan isn't really a money loan; just a fake deed of trust or financing statement. This is foolish. It takes any judge with half a brain (and most have whole brains) about 10 minutes to undue this type of foolish Asset Protection. I think people like it because it is easy and cheap. It is also ineffective and foolish.

4. Trust Uncle Henry:
This is the standard, give it to a friend or relative and trust that they will give it back to you when the trouble is over. This never works. If the transfer to Uncle Henry occurs when trouble is brewing, it is a fraudulent conveyance. Also, there is a better than equal chance that Uncle Henry will just keep what you gave him. This is always a mistake.

5. The Offshore Credit Card and Secret Bank Account:
This is DEAD. Really dead. The IRS knows about your offshore accounts, whether or not you have reported them. If you have decided not to, your only risk is jail…not whether or not a creditor will get to the assets. Once discovered, you will be ordered to return the money. If you refuse, then you will become Bubba's room mate. This never works.

6. Nevada Bearer Shares:
This is another ridiculous and ineffective way to protect assets. The main promoter of this scam was recently shut down by the Federal Trade Commission (Asset Protection Group). Bearer Shares DO NOT exist in Nevada. They are not authorized by the laws of Nevada. The bottom line is that this is another ineffective and illegal technique. Avoid it.

Those six techniques top my list of the top idiotic and ineffective Asset Protection techniques.

If you need help, go to a pro. Pay for good advice, check references, and get the best. Always involve your local lawyer and CPA, and never fall for anything which seems easy or cheap. In each and every case, these will also be ineffective and probably illegal.

Have a healthy and protected week.

Rob Lambert

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