Not everybody can afford a sophisticated asset protection plan, and in some cases it would be an overkill. However, as your wealth appreciates, your asset protection plan has to appreciate. ITíS ALL ABOUT THE MONEY. If you have any kind of visible wealth, youíre a target, donít make any deadly mistake about this fact of life.
Subjective Bad Faith or Malice. A frivolous lawsuit is one not grounded in fact and not supported by either a basis in current law or a sincere argument for a novel legal theory, filed solely to cause unnecessary delays, harassment, adversity, devoid of merit on facts and law, intentionally and fundamentally used for improper purpose and tactics. (a shakedown)
Asset protection is a building block, a work in progress, it must be flexible. Add or deduct building blocks as your needs and financial conditions change i.e. a sudden inheritance, a sudden death of a family member, kids leave, you marry, you divorce, you have a child, you retire, you buy a house, you start a business .....etc.
IDENTITY THEFT, is the FASTEST growing financial crime in America. -source: U.S. Secret Service.
The Internet, spyware on steroids. invisible wealth snatchers
How "paranoid" are you? How "paranoid" should you be? the problem is not the zillion merchants collecting data about your spending habits. The problem is who's collecting the data without your knowledge. And, for what purpose?
Hold yourself accountable. If you've taken no steps to protect yourself, your wealth, and your family from thieves, con artists, ruthless greedy lawyers, overzealous bureaucrats; you have underestimated the abilities of these shrewd, ruthless, invasive, money hungry, predators. -Rocco Beatrice, cpa, mst, mba
Asset protection planning has become popular because the average person understands that the legal system has become capricious and unpredictable. Judges have come to love power in their courtrooms, juries want to send a message. Those who prepare themselves will be able to survive.
Avoid ID Theft click here for more information on how
u Never, never, NEVER do business as a "sole proprietor." Sole proprietorship is the absolute worst way to do business. You are a walking lawsuit about to happen.
u Never, never, NEVER do business as a "general partnership." Not only will you be responsible for your own financial problems, but you may be held responsible for each and every-one of your partnerís problem(s); even though you had absolutely nothing to do with it and you can prove it 100%. Deeper pocket theory: they're putting in a nickel, but they want back a dollar.
u You should never be the owner of your life insurance policy. What your insurance man wonít tell you could cost your heirs 55%. If you are the "incidental" owner of your life insurance policy itís taxable in your estate up to 55%, before any distribution can occur to your heirs, period.
u You are never, never, NEVER 100% bullet proof. No matter how difficult you make it, if you are in the United States, a Judge can do whatever he wants. Itís a court of equity. Itís a fact, if you have a lot of money, and you are less than star face quality (youíre ugly) DO NOT stand in front of a jury. Statistics show, you will lose 98% of the time. Internationalize your asset/wealth protection plan.
u Donít show-off. Donít flaunt your wealth. Donít stick it up their nose. If you are doing well, beware, donít invite a frivolous lawsuit. Donít title everything in your name.
u Donít rely on your stateís homestead laws. Each state is different and each state has limitations. Donít rely on your state to protect you. They can be sued for aiding and abetting a crime if you use state laws to get away with something. The state of Florida with the most lenient homestead laws has been attacked for aiding in the commission of a fraud against creditors. Besides, if you use homestead laws, you CANNOT sell your property. There are better ways, see the ULTRA TRUSTģ
u Buy an adequate business insurance policy. The only reason you want a liability insurance policy, is that they must provide for your defense. In case of a major catastrophe, no matter how much you could afford on insurance it will never, never be enough. Liability insurance policies cover "actual" losses. They DO NOT cover "punitive" damages, jury awards, or other costs over and above actual damages. Again, and again a very strong case to get your house in order while the sea is calm. And consider this: if you have an adequate asset protection plan, you may not need a huge insurance policy. (Pays for your asset protection planning)
u Not all states are created equal. Local laws and local state laws create your creditorís ability to get at your assets. Check with a reputable attorney.
u Assume that most "asset protection experts" are not qualified. Most professionals don't have a clue. What's even more offending, they will not admit to you they don't know, and scoff at what they don't understand. Notice how all financial planners claim to be experts, experts in what? Then they try to sell you a "living trust" or try to take management of your money, sell you an insurance policy, etc. Itís a fact: an incompetent advisor will cost you far more than a lawsuit.
u Never ignore a lawsuit. If you are served, get good competent advice, and respond. If you have an asset protection plan, or you have adequately planned, you may lose your case, but they may never be able to collect.
u Judgments are not automatically recognized by all countries. The reality of life is that most countries think that the United States is the most nonsensical legal system of tort, securities, tax, and anti-trust laws.
u Get good professional competent advise. Rely on good planning NOT secrecy. Rely on law and NOT secrecy. An incompetent advisor will cost you far more than just money.