People offering easy and ineffective solutions to the perceived threat from an uncontrolled legal system. The internet is blanketed with crooks, scammers and opportunists (no better than the contingent fee bounty hunters) who offer asset protection without substance. We have an entire section on the Trustmakers site identifying the characteristics of these scammers (see http://www.trustmakers.com/assetprotectionscams.html)

They all have a few common characteristics: They normally offering Too-Good-To-Be-True promises along with some form of promised tax savings. They also require you to lie to preserve the protection.

The bottom line is that the only truly effective asset protection involves the transfer of assets off your balance sheet (remember, what you don't own can't be taken from you) at such a time that the transfer is not a fraudulent conveyance.

Normally, effective asset protection also involves some foreign aspect which takes advantage of the fact that no country in the world automatically recognizes Unites States judgments.

In most cases, solid asset protection will not save any taxes. Sorry to say, it is also almost never cheap or easy! In this post 911 world, the cost of ill-conceived bargain asset protection is often worse than the disease.

In Pet Peeve #3, we'll tell you about The Cost of Asset Protection.

If you would like more information regarding asset protection, trusts, family limited partnerships or the subject of this article please call or email our office.