Litigation Cha-Cha.

Date : 02-Aug-2007

Dear Subscriber:

The decision to do Asset Protection is not a moral issue. It is as simple as this: If you love and respect yourself, you will take steps to protect yourself from harm. This means any type of harm, and runs the gamut from health concerns (so you wash your hands, exercise, and go to the doctor) to financial melt down (so you save your money, buy insurance, and implement appropriate Asset Protection). At different phases of your life different types of planning are appropriate.

People who do not protect themselves are either foolhardy (like the motorcyclist without a helmet), careless, intoxicated or just plain stupid. Why would anybody step into a den of rattlesnakes and not wear high boots?

I suspect you all know how I feel about the necessity of Asset Protection. Now, I am going to shock some more folks when I say that offshore planning, and Asset Protection trusts are NOT appropriate for every person. Remember, I say that everybody needs to do appropriate Asset Protection. The operative word is “appropriate”.

Everybody needs protection….this does not mean that everybody needs fancy lawyers and offshore accounts. What everybody needs is something that is appropriate for them in their station in life.

To start to evaluate what is appropriate, one should realize that all Asset Protection techniques are designed to help you preserve and maintain your “stuff” whatever it is.

In making this evaluation of what is APPROPRIATE, it is important to understand that Asset Protection Planning will not stop lawsuits.

All that Asset Protection Planning of any sort can do is help you out dance your opponent in whatever game of “let me take it from you” he is playing. I call it the “Litigation Cha-Cha”.

It is a simple fact that most people do not sue on principal. They sue because they want to make money. Litigators are hired because they promise to get you the big bucks with little or no work on your part.

So, when you are evaluating the various forms of Asset Protection that are available to you, always ask what will the “let me take it from you” battle will look like. If you are a fancy person with some perceived wealth, the battle is likely to look like a lawsuit fought in federal or state court. If you are a police officer, it is more likely to look like a bullet from a loaded 45.

What is important to understand is that it is all game theory (even though it is not a game). The police officer wants to make it more likely that he doesn't get killed, and the bad guy does, so they wear vests and use bigger guns. The fancy person facing the risk of lawsuit may enlist a host of defensive technology including insurance, fancy lawyers, solid Asset Protection Planning and ERISA plans.

The purpose of this newsletter is singular: When you are forced to dance the Litigation Cha-Cha make sure you are armed to the teeth. Even though you cannot keep the scum bags away, you certainly can make it cost them 10 dollars to collect 10 cents.

Nearly everybody will be forced to dance the Litigation Cha-Cha sometime in their life. Make sure you have done the Asset Protection Cha-Cha well before hand, and you will be much more likely to prevail in the dance. Once a plaintiff and his lawyer realize that they will be spending dollars to collect cents, they often go away or settle.

SOME THOUGHTS ON SETTLEMENT
We all hate lawsuits (well, everybody except tort lawyers!). They waste time and money; and, they are seldom fair. Even so, I often say to clients facing an expensive and burdensome suit: A BAD SETTLEMENT IS ALWAYS BETTER THAN A GOOD LAWSUIT. In the same way that most greedy tort lawyers will not litigate on principle, a protected person should not defend a suit on principle alone. Sometimes paying a little blood money to some rotten extortionist is better than spending ten times the blood money on legal fees defending yourself.

So, when the dreaded suit comes, recite the above manta every time you want to raise a fist at the scum bag who is suing you. Sometimes a little peace is better than the joy of truth.

Now, go have a healthy and protected week.

Best,

Rob Lambert

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.

Full Bio - Email Rob