By
Rober Lambert
President, Asset Protection
Corporation
Dear
Newsletter Subscriber:
My
oldest Son is about
to graduate from
one of the top ten
law schools in the
top 10% of his class.
He is one of the
few graduates from
his school who has
a good job. [Comment
from an old Dad:
Maybe a job which
pays 150K per year
but makes you work
70 hours per week
helping corporations
comply with bureaucratic
rules is not a good
job at all…time will
tell!]. The real
bottom line is that
my Son is fortunate:
no matter what, he
will at least eat
in the near term
and get good training.
The
sad truth is that
my Son’s situation
is very rare. Most
of the 100,000 plus
graduates our law
schools turn out
each year can’t get
a job. They swarm
out of law school
with little more
than huge debts and
a license (after
they pass the bar)
to sue. Most are
at best underemployed
and many are unemployed.
This is the problem.
Faced with the financial
pressure of huge
debt and little or
no income, many of
these young jurists
turn their license
to sue into a license
to steal.
We
are the only country
in the world which
supports contingent
fee litigation. The
hugely strong Trial
Lawyer Association
lobby has created
a climate where we
actually encourage
the small, but very
dangerous percentage
of these recent graduates
who abandon morality,
and opt to become
predators (no better
than common burglars
in my mind) to sue
anybody for almost
any reason. These
lawyers spend their
time looking for
anybody with reachable
wealth. I know; because,
I represent many
of them. As soon
as they get their
first big hit in
a settlement they
come to me and ask
to be protected from
their fellow predators.
This is a terrible
but true situation.
The
real bad news: It
is not going to get
any better. Tort
reform is not working.
So, the bottom line
is that you need
to do it yourself.
The government and
our legal system
will not protect
you… period. The
legal system has
become in part a
government supported
system to transfer
wealth from those
who have it to contingent
fee litigators who
also have it. Sometimes
the client will end
up with something
also.
How
do you protect yourself?
There
are many ways. The
bottom line is that
these guys NEVER
sue on principal.
It is always to shake
down somebody with
money and then move
onto the next target.
If you make it too
expensive (like installing
a burglar alarm)
they will go after
somebody else who
hasn’t taken the
time to protect themselves.
The
various techniques
fall into three broad
categories:
The
“To Hell with America”
Category: This is
traditionally the
person who throws
up his hands and
moves abroad, taking
advantage of the
second primary rule
of asset protection
which is “No country
in the World automatically
enforces US judgments.”
The real truth is
that most countries
think our laws are
nonsensical (imagine
trying to enforce
a securities law
judgment in a place
like Japan where
the entire business
system is built on
a series of tying
arrangements which
would be illegal
in the USA!). I will
expand on this in
later newsletters;
however, many Americans
would look at this
as a steep price
to pay for that feeling
of comfort you have
when you know that
you are safe.
The
“Thousands for Defense
and not and Ounce
for Tribute” Category:
This is traditionally
either a very rich
person or a large
and moneyed company.
Their strategy is
to make any predator
suing them spend
a hundred dollars
for every dollar
they might collect.
These people do not
normally adopt the
philosophy that a
“bad settlement is
better than a good
lawsuit.” They fight
and normally win;
because, they can
spend the big bucks
for the teams of
lawyers.
The
“I Don’t Trust Our
Judicial System but
Have to Do Something”
Category: This is
the traditional hard
working American
who has saved some
(and sometimes a
lot) of money but
loves his country
and doesn’t want
to throw in the towel.
This is often a person
who has a business
or a career, or is
the doctor or legitimate
lawyer who can’t
leave because of
his or her license.
These are the fighters
who refuse to be
victims. This is
the category that
most of my clients
fit into. Most future
newsletters will
deal with what options
this type of person
who has to “Stay
Put and Fight” has.
The bottom line is
that there are many
options from simple
Homestead exemption
planning, to pension
planning, to sophisticated
(and some not so
sophisticated) asset
protection techniques.
We will explore them
all; often inviting
guest writers to
give you their two
cents worth on special
issues.
Well,
that’s about it for
now. I just wanted
you to know what
I perceive the dilemma
(“Greed and an out
of control unregulated
judicial system”)
and the solution
(“making it uneconomic
for these professional
contingent fee litigators
to pursue assets”)
to be. This is Self-Help
Tort Reform which
is what asset protection
really is. Unfortunately,
I think it is about
as good as you are
going to get it for
the next generation
or two. Our goal
is to help you get
a good understanding
of the issues and
your options.
Best,
Rob
Lambert
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.
