Traps and Scams
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.