Traps & Scams

Posted on Posted in Asset Protection, Blog Articles, Primary Info Articles

Tips to watch out for Asset Protection Scams and how you could lose all your hard earned money if you fall for one.

 

PROMOTERS

Many unqualified people are marketing themselves as asset protection experts. Always check references and the training of the supposed expert. Anybody claiming expertise in asset protection should have substantial tax and international law training.

ASSET PROTECTION WILL SAVE YOU INCOME TAXES

If anybody promises that an asset protection plan will save you income taxes: RUN. Asset protection planning will not save you a penny on income tax (although it can help with estate taxes)

JUST PUT YOUR MONEY WITH A FOREIGN TRUST COMPANY, IT’S CHEAP AND EASY, TRUST ME

NEVER trust a foreign trustee (or anybody else) with your hard earned money. If somebody
suggests that you have to “trust” somebody else: RUN.

WE’LL ENCUMBER YOUR PROPERTY, THERE WILL BE NO EQUITY TO TAKE

If a practitioner suggests that a related entity encumber your assets with phoney loans, RUN. This is a popular scam and it doesn’t work (but it will cost you a lot of money and trouble).

ITS OFFSHORE, YOU DON’T HAVE TO PAY TAXES UNLESS YOU TAKE THE MONEY BACK INTO THE USA

If a practitioner suggests that the IRS can’t find or tax the offshore account they are recommending then RUN because they are wrong. The IRS currently has more than 400 people working in FINCEN. Their purpose is to locate such accounts. Doing this is a crime and we have seen the United States spend millions of taxpayer’s dollars to prosecute such crimes. Remember, citizens or residents of the United States are taxed on their world wide income “from whatever source derived.”

NEVADA HAS GREAT SECRECY LAWS AND IT’S TAX FREE

Stay away from Nevada corporations. For some reason, many of the marginal schemes use Nevada corporations and addresses. This doesn’t work and it is a red flag.

JUST DON’T TELL THEM ABOUT IT

If you are asked to lie: RUN. Asset protection should work because it is done properly. You should never be put into a position where your protection depends on deception. If all the details of your asset protection plan come to light you should not be compromised.

GIVE IT TO YOUR WIFE AND THEY CAN’T GET IT

If a practitioner suggests that you “give it away” (usually to a spouse or child) it is usually too late; and, this normally doesn’t work. It is always a bad idea unless you were going to make the gift anyway.

CHARGING ORDER PROTECTION IS THE ANSWER

If a practitioner suggests a “Family Limited Partnership” and touts the “charging order protection” as adequate, get a second opinion; because, it often isn’t.

Watch my free asset protection training course to get more info on how to avoid traps, scams, and get the fundamentals of asset protection explained in a way that’s easy to understand.

Usually the seminar and mass marketing promoters are scammers. High end asset protection simply requires expertise and time…and it is usually expensive. Avoid bargains because, like all things in life, you usually get what you pay for.

ALASKAN TRUSTS AND DELAWARE TRUSTS

Alaskan trusts and Delaware trusts are being marketed as a great asset protection tool. Well, they aren’t. Don’t forget the full faith and credit clause in the constitution. Sister state judgments are enforceable in both Alaska and Delaware. These trusts only benefit the lawyers and trust companies in Alaska and Delaware.

PURE TRUSTS and CONSTITUTIONAL TRUSTS

Pure fraud. These trusts, known in the trade as “Con Trusts” because they are advanced by Con Men, don’t work and they get you in trouble. Several circuit courts have labeled them fraudulent as a matter of law. A year doesn’t go by that at least two people come to me to try to help them keep their houses after using one of the variations of this scam. Don’t do it.

OFFSHORE BANK ACCOUNTS and OFFSHORE CREDIT CARDS

Offshore accounts are great and safe if done properly; however, they will not save you any taxes. Watch out for the often touted “offshore credit card” which will cost you a $200 processing charge. Most of these marketers are just scamming you. Once you purchase the card be prepared to wait a very long time for its delivery.

SALES COMMISSIONS

Watch out for the fee based financial planners who charge a fee plus take sales commissions. We have seen many people lose much of their principal for the sake of asset protection. You never need to give up control of your assets.

OFFSHORE PERSONAL BANK ACCOUNTS

Won’t help. Might cost a quarter million or so… but, it won’t do much more than cause you a huge accounting and legal nightmare.

 

For more information on how we can help you protect your assets, please feel free to send us an email and we will contact you right away!