90% of Americans spend more time planning their annual vacation than they do their family’s financial security and lifelong peace of mind. We spend our whole lives accumulating our wealth and providing for ourselves in a world where an unexpected event could easily devastate a lifetime of accumulation. Every year the number of these events grows, businesses and families are suddenly devastated. Planning for your financial security is the foundation for success.

Regardless of your lifestyle, profession, location or prudence, you are constantly engaged a highly regulated litigious legal society. You can reduce your exposure, however it simply cannot be avoided. An automobile accident, liability for children’s actions, divorce, a business partner dispute, tax liability or even someone claiming defamation – you could be faced with an unexpected encounter at any time. 100% of individuals or families that have experienced an unexpected event with financial impact would wish to rewind the clock and implement at least a simple financial protection plan that would greatly change their level of vulnerability. In those cases, the victims learned about threats to their family’s financial security the hard way. When you realize that financial stability isn’t taken for granted, it will be time to begin planning the security for your future.

There are countless facts that demonstrate everyone's relationship with unforeseen financial vulnerability. In the United States there will be nearly 100,000,000 lawsuits filed next year alone. Hundreds of thousands of people will wind up in an automobile accident with liability that is in excess of their insurance policy or what their insurance company will cover. Tens of thousands of individuals will encounter a medical or health related incident that will quickly add up to more than they can afford. Many people are now faced with the economic collapse and will be out of a job with bills piling up. Thankfully this may not apply to you now, however as the next year unfolds and 2,000,000 Americans face bankruptcy, you have the opportunity to plan your financial security and family’s well being now.

There isn’t a guaranteed way out of the American legal arena or anything you can do to dodge liability without structuring your financial security with asset protection planning.

Benefits of Asset Protection & Corporate Structure Planning

When an individual is handed a massive judgment in a lawsuit and has a strong asset protection plan in place, the outcome is much different. Consider the most publicized court case in history - O.J. Simpson. He won the criminal case, however lost the civil court ruling. His judgments are in the millions, yet he still manages to live a wealthy lifestyle in Florida.

A solid asset plan can provide many benefits. Here are some true-life client scenarios that put an individual's entire estate at risk in a single moment.

Legal Cases

A client had a neighbor walk through the front yard of one of their houses. The neighbor broke her ankle, suffered a blood clot and died. The owners of the property were sued for far in excess of what their insurance covered. They waited until it was too late and lost nearly all of their worldly possessions, including the their home.

Another client owned multiple rental properties, leaving huge exposure to a legal opponent. One of his tenants decided to sue and their attorney performed an asset search. The search resulted in only one property being located that had very little equity. Part of the plan was to create a Nevada LLC that had a 2nd mortgage on the discovered property. The attorney suggested that the case not be pursued. All the while our client had over 20 properties and a considerable estate; however the protection plan kept his wealth out of view of the opponent’s legal team looking for assets to take.

 Facts about Asset Protection Plans
Very few of us consider the act of a lawsuit in our daily lives, therefore protecting against it is not a priority. What considerations do we protect ourselves from; car accidents, homeowner incidents (fire, flooding, etc) - a lawsuit is hardly "expected" which leaves most of us wide open for being a target. Even if a lawsuit seems frivolous, you can still lose.

• 78% of lawsuit defendants never thought it would happen to them
• 90% of all lawsuits are filed in the U.S.
• A new lawsuit is filed every 30 seconds, on average
• The self-employed and business owners have a 33% chance of becoming a defendant in a lawsuit
• There are over 100,000 students in law school today
• FBI reports that a quarter million criminals make their living through lawsuits

Asset Protection is not just for the wealthy, recent studies show that the average income bracket for targeted lawsuits is under $200,000 a year.

By establishing an asset protection plan before its necessary, you safeguard your wealth from a predator. In the event that your assets are jeopardized or you are a defendant in a lawsuit, any transfer of your assets is subject to a criminal offense scrutiny under fraudulent transfer laws. If you are sued and you give your assets to a family member, it can be quickly interpreted as an attempt to defraud a creditor - landing a criminal charge.

If you transfer assets or property knowing that you are likely to be sued, it could be considered fraudulent and, in that case, you could be faced with defending the asset transfer. The transfer could be reversed and you could be charged and fined. Asset protection is much more difficult after you need it; however it is possible but will take much more careful measures.

Beginning Asset Protection

First assume a practical way of thinking about your financial future and believe that you are at risk of facing a threat to you and your family’s financial security with the rest of us. Second, speak with a qualified and experienced professional about your financial world and start planning to adopt realistic protection that surrounds your assets.

Creating a skilled and well-defended financial security plan is legal and moral. Seeking professional assistance to protect your assets is a proactive measure to safeguard your financial future. Asset protection planning is just that, planning, once you are in a situation that jeopardizes your financial security and your assets are at risk, it is a difficult starting point and transferring your assets at that point can be fraudulent. Spending several hours with a qualified planner could be the difference to weathering a legal storm with a significantly better outcome, for you, than having no plan in place.

Getting comfortable with the commitment to protecting your assets is the first step. Creating a financial security plan is a lawful and moral decision in which that all of us have a right to participate. There are ways to protect your assets in the midst of legal duress. It is ideal, however, to shelter your assets from a creditor prior to times of legal duress or are transferring assets before you have legal liability, so you can be clear of what is called “fraudulent transfer.” Taking a proactive step to secure your family’s financial future is a healthy objective.

The legal system can very quickly turn into a virtual minefield of threats to your lifetime accumulated wealth and ability to provide for you and your family. Being able to take advantage of laws and legal tools to protect your assets is using the same system for your own financial protection.

Moral Examination

Asset protection planning should be conducted in compliance with all laws and implemented without any intent to defraud or intentionally shelter your assets from those who may have a fair request to satisfy an obligation you made. The moral decision is based on taking action to reduce the exposure of your assets to frivolous or unwarranted liability, even if it makes its way to a judgment. This is a case of preservation, no different than learning self-defense. Asset protection defends you from legal harassment or from becoming a target simply because your wealth is out in the open and exposed.

Asset protection has been adopted as a legal specialty over the last several years and old, established associations and organizations such as our own grow this arm of the legal industry. Tools and instruments designed solely for protecting the wealth of individuals are well understood by the courts and can be used to defend your financial future. It is up to you whether or not you choose to secure your financial future by taking advantage of the tools and resources that are legally available.

Protective Action

Taking measures to protect your financial security should ideally be done during times of no legal duress. Most of us believe that seeking legal help is a reactive initiative; you hire legal assistance when you need to respond or defend against something. In the case of asset protection you are assembling the resources when you don’t “need” them. Timing is critical to creating well-defended legal protection of your finances; courts will negate a desperate transfer of assets in the face of a threat. Most individuals will take asset protection seriously only when they are faced with a lawsuit or pending legal threat and the apparent need for protection will fade away when assets are diminished and the crisis period is over.
Relying on a financial foundation that is protected by a skilled plan is peace of mind for you and your family. Correct and proactive measures are the only way to get there.

Points to Remember

1. Asset protection is legal and moral
2. Solid planning is critical to protecting your financial future
3. Accept the legal system for what it is and take measures that protect you
4. Asset protection is a continuous commitment
5. You should to work with experienced and qualified professionals
6. Protect all of your assets, even future assets
7. The most secure starting point is right now

Who Should Create a Plan and who should not?

Creating an asset protection strategy should be done with all things considered and performed by a reputable and experienced asset protection and corporate structure individual. This individual should understand not only corporate structure and asset protection but should have a solid tax background. These structures need to be formed properly and used properly to be bullet proof from liability and your tax life. When taking legal deductions your entities must be formed and used properly to avoid any attention from the IRS.

Over the years I have witnessed many individuals who are not educated on the importance of who and how your protection and tax shelters are designed. The results have been dramatic especially when the entities are tested. Many think it is in their best interest to shop the do it yourself models or asset protection farms to save a buck. But let me advise you this. YOU GET WHAT YOU PAY FOR. This is the same as cheap insurance and or cheap HMO coverage. It sounds good to the pocket book but when it is time to perform the results can be fatal. Below is just a small example of the necessities you do not get from most do it yourself or cheap structure.

You do not get the following:
Article Filings
Consultation with CPA to choose the right entity structure and tax minimization
Nevada Address
Emailed Documents
Spreadsheet for RE
S-Corporation Election
Corporate Book with Corporate Embossed  Seal
Recorded Keeping /Tax Deductions
EIN (Employers Identification Number)
Resident Agent
Initial List
How to use your entity properly advised by a CPA
Ongoing support.

Your Asset Protection Goals

Your primary objective should be to ward off a frivolous claim or unreasonable settlement and maintain your financial picture during a legal storm. There are a number of ill-advised actions that have been attempted in the face of legal threats: gifting assets to a friend, spouse or children, selling them for less than their value and many more. The true test of an asset protection maneuver or action is whether or not your creditor can persuade the court into ruling that your action was a deceptive act to move assets out of their reach. There are ways to protect assets even if they do so rule but it is preferential to acquire the “legal insurance” before a “legal car wreck”.

It is best that your asset protection pass the fraudulent conveyance test in order to succeed in a court of law. Last ditch efforts to move assets during legal duress are rarely successful. You cannot bypass financial obligation by tossing your assets to someone you trust or another equally injudicious attempt to shelter from a creditor claim. Your legal opponent can very easily recuperate your assets after knee jerk attempts to protect your wealth. Most states will follow the Uniform Fraudulent Conveyance Act (UFCA) or the Uniform Fraudulent Transfers Act (UFTA) and the rest will fall back on English common law that resembles the principles in American fraudulent transfer laws as well as the UFCA and UFTA.

If you would make an attempt to preserve your financial security in the face of a legal threat, why wouldn’t you take the time to do it right so that you don’t have to worry?

A One Time Net Worth Insurance Fee
Unlike liability insurance, asset protection insures the asset itself. In fact it protects assets that some insurance cannot even cover. From the concept of insurance, it's also very inexpensive.

Minimal Disruptions to Business From Potential Litigations
During unforeseen circumstances such a lawsuit, an asset protection strategy serves as an effective deterrent to predators and settlements are reached as quickly as possible.

An Investment That Will Appreciate In Value
Once you've invested in a good asset protection strategy, you don't need to buy it again, or keep paying for it. This is an investment that will appreciate in value. And the older it is, the stronger it becomes. It is truly the best means to preserve, and protect your wealth.

Freedom from Fear
Without the fear of being attacked, your energy is freed up to pursue your goals and enjoy life. As a business owner, you don't have to be wary of every person being a potential lawsuit. As a leader, you can take more risks, and be aggressive about growing your business. As a doctor, you can focus more on your patients.

Wealth Preservation Advisors, LLC
Ann Genet
Paralegal
Tele: (702) 838-4995
Fax: (702) 838-7053
nvparalegal@cox.net
www.wealthadvisors.net