Asset Protection Footprint
By John Dietz - 
Email Editor
April - May
Dear Valued Reader,
Most
of us have heard the term carbon footprint and have considered its
meaning, the long-term effects and possible solutions to the problem.
From separating trash to buying hybrid cars, a majority of people have
seriously attempted to reduce their carbon footprint. The very
definition is a measure of the impact our activities have on the
environment as it relates to the amount of greenhouse gases produced in
our day-to-day lives, through burning fossil fuels for electricity,
heating, fuel consumption, water usage, diet and a host of other
factors. A carbon footprint is the measure of all greenhouse gases we
produce individually.
Taking
a page out of the carbon footprint measurement, we can extrapolate a
new way of looking at your wealth by determining your asset protection footprint.
Having a large amount of wealth in most instances increases your asset
protection footprint. For this discussion, your asset protection
footprint will measure the liability exposure of your family name in
the world, the amount of property you own, the amount of counties,
states and countries you cross, not to mention, how exposed your assets
(liquid assets - gold - currency - stocks - bonds) are to creditors.
Exposure to liability is pervasive due in part to the new media tools available. Do you have a Facebook account or any social media account?
Creditors and the IRS find it very useful. Is your family name on any
of your property? Do you have large amounts of cash deposits in your
family name? Is your brokerage account in your family name? Are you in
the media?
Looking at the
real estate run up prior to 2008, many clients had and still have
properties in multiple states and multiple jurisdictions. Barring the
potential exposure in those states for potential creditor attack, the
energy output to gain and manage one net dollar is more challenging
than owning the same amount of properties in your local community.
While gains were better in so-called hot markets, more energy was
needed making potential creditor attack inevitable.
As with a carbon footprint, your wealth accumulation goals should
include a systematic approach to reducing your asset protection
footprint.
In this case, the risk is the amount of exposure each asset
may have to a potential attack from creditors near and far. It seems
that no person or group was left out of the 2008 financial crisis.
Prior to the crisis, many people I spoke with felt that they did not
have a need for asset protection. |
- Real estate held in your name
- Equity in your personal residence
- IRAs and pensions
- Stock portfolios
- Inheritance
- Cash value life insurance
- S-corps, C-corps and LLCs
What if you were to get an inheritance today? How would you receiving the assets? Would you receive the assets in your own name?
- If so, did you go through a short sale recently?
- Do you have any current judgments?
- Do you owe the IRS?
This brings us full circle; getting money outright
increases your asset protection footprint and therefore increases your
exposure to potential creditor attack.
Solutions for today do not need to be overly complicated and in many
cases lower valuations make for good planning. You can lower your asset
protection footprint by using proper court tested asset protection
structures. In most instances, the solution will be a combination of
legal roadblocks to keep the bad guys away from your hard earned money.
By preparing now you can receive inheritances, you can enjoy the
wealth, and you can send it along to the next generation, all the while
reducing - your asset protection footprint. Now, if we could only figure out how to reduce our carbon footprint, maybe the price of gas would eventually go down.
Please call 888-916-7070 or email info@trustmakers.com
By John Dietz.
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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.
04 APRIL
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