The Way We Operate Our Businesses, And The Business Of Our Lives

By John Dietz - Email Editor - Editor Bio

Date : 02-Jan-2007

The end of the holidays brings closure to the old and rings in the new; it is time to get back to business. Starting 2007 with a “check up” is a healthy way to review and inventory the approach that we use to operate our businesses and the business of our lives.

CRITICAL THINKING
A phrase that implies an ability to analyze ideas and solve problems while taking a sufficiently independent, "critical" stance toward authority to think things out for one's self.

Some theories on critical thought apply to every generation. Basic emotions act as the guide to giving us the “critical” stance in thought. One of our most basic instincts is protection.

While the instincts of protection pass to each generation, the rules are changing. If you are like me, you will find that it takes a great deal of time to sort out the changing IRS codes, the updated court cases and our personal liabilities. Then as if you were a wizard, you must rapidly apply these changes to your business and your life.

SURVIVAL OF THE FITTEST
It is not necessary to change, survival is not mandatory.
W. Edwards Deming, an American Professor and Businessman, The Demings Institute

TrustMakers makes a goal to convey relevant information that is critical to your mindset about Asset Protection. I begin by creating a system in which you can sort your thoughts and construct that decisive stance through my P-L-A-N.

P – Paradigm Shift
L – Lay a Foundation
A – Administrate
N – New Rule Principles

PARADIGM SHIFT (Sometimes referred to as Adapt or Die)
Paradigm Shift – (Wikepedia) – the term used by Thomas Kuhn in his 1962 book The Structure of Scientific Revolutions to describe a change in basic assumptions within the ruling theory of science.

Currently this theory is applicable to many human experiences. When enough significant inconsistencies appear against a current logic and paradigm, the current model shifts into crisis. Out of this crisis springs a new model of critical thinking. The Paradigm Shift theory has become known and applicable to many successful business models.

The model of our country is one of an over litigious society. Many lawyers refer to the state of their very own profession as “crisis” indicating that a shift is soon to follow.

Einstein’s theory on the state of reality and relativity provides the parent model that is never stable; it is a constantly changing and evolving state, resulting from attacks and reactions. This is very similar to the state of reality in tort law and Asset Protection. Chaotic rules, restricting policies and changing laws evolving from the new Congress, the Patriot Act and a new bankruptcy code will challenge asset planners while designing your personal plan.

- How will the courts judge the intention and purpose of a person who is implementing an Asset Protection Plan?

- Will the courts treat the moving of personal assets separately from the moving of business assets?

- In terms of liability, how will the courts look upon the liabilities of executory managing members versus non-executory managing members in LLC’s (those who participate and contribute to the business vs. those who sit on the sidelines)?

- How will the courts look upon the old days when a person could neatly tuck away their personal assets into business shells to shield these assets from creditors?

- How will the courts treat offshore planning?

These are only a few of the issues that will be resolved through litigation and legislation in the next few years. Undoubtedly, lawyers will defend their clients with philosophies and positions pertinent to winning their cases. Congress will initiate laws to increase our tax base and protect our national security interests. When the decisions render, the roaring seas of doubt will level with new precedent cases. Being aware of these changes will give you an enormous advantage in creating a plan that is secure both now and in the future.

The foundation of a solid plan is that it meets the criteria to withstand the attacks the crisis from paradigm shifts.

There are mind exercises to practice thinking with the changing, unsettled issues. Literally, step out of the box and attack yourself; expose your business and your life to every crisis, chaos and liability that you can imagine. How did it feel? Do you have any solutions? Adapt or die; can you make the shift?

LAY A FOUNDATION
Once you realize that you are vulnerable, your instinct for protection and security override your fear. You now have an established goal or result in mind and then you must take an inventory to determine where you will start.

Inventory
- Make a list of your assets NOW.
- Make a list of what you predict you assets to be in the future.
- Make a list of your liabilities NOW.
- Make a list of the liabilities you predict in your future.

Seek Professional Help

Come to the planner with an open mind. Be emotionally prepared to face the exposure of the unknown. Your newfound understanding should shift your paradigm from uncertain feelings to safe measures. A good asset planner and attorney should “Lay a Foundation” that meets the burdens and demands of our ever-changing society and gives you this secure feeling.

What is a good foundation? You have a goal and you have a place to start. A good plan is the plan that gets you from A to Z, essentially backed by the laws and policies that govern each step.

ADMINISTRATE
Reality is the basis for a good foundation; this means that you must accurately inventory your assets and liabilities to efficiently administrate and execute your plan.

Administrating a plan involves the following steps:
- A conversation addressing your personal needs, concerns and goals
- A follow up questionnaire and application process
- An engagement letter
- An education program to help you make the best decisions
- A personal plan targeted to address your needs for Asset Protection
- Implementation of your plan
- Follow-up and management

Turn around time varies but typically, accomplishment occurs within the period of a few weeks. During this time, TrustMakers manages and oversees each step along with you.

THE NEW PRINCIPLE RULE – KINETIC ASSET PROTECTION
The Kinetic Trust module implies a moving product. This movement is necessary to allow the flexibility essential to meet your changing life and your changing business. An Asset Protection Plan requires built-in flexibility to conquer the liabilities, those known today and those that are unknown tomorrow. As paradigms change, so must you.

If you are not prepared to change, you risk survival.

You should maintain a good rapport and confidence level with your asset planner and your attorney. At TrustMakers we take the time to understand your life so that the plan fits you. No single model meets the requirement of everyone; a personal plan is necessary to ensure your assets are out of harm's way. We, like you, must be prepared.

I look forward to helping the clients of TrustMakers secure their life assets and their businesses.

Until next time,

John

ABOUT THIS EDITOR:

John Dietz is a strategic advisor at Trustmakers.com with a passion for client solutions that can encompass your business, your real estate, and your personal assets. Mr. Dietz serves to educate you on the latest in asset protection planning.

Full Bio - Email John

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