Savvy Families Plan Ahead 5 Years,Because, It's Not What You Earn,But What You Keep!A HUMBLE ACKNOWLEDGMENT
To Og Mandino
I need to acknowledge the impact that Og
Mandino has made in my life, and it can be summarized with this
quote from Og Mandino, shortly before his death at a convention
in Dallas Texas in 1995 he stated: "The most important secret of success,
that I had to learn the hard way, is that life is a game! It's
precocious, it holy, it's beautiful, but it's a game! And you
can't play in that game, with any chance of all of winning, unless
you know the rules! Slight problem, while we were growing up,
nobody every taught us any of the rules. Not once! Not in primary
school, Jr. High School, High School, College, College Graduate
School. Not once, did anybody take 45 minutes to teach us! So most of us, we become spectators in this
greatest game of all! Pushed aside by the lucky few, who seem
to know what they want, and more important, who seem to know how
to get it! The pros; the great performers, they are all down on
the field, where all of the action, all of the glory, and all
of the money is! And the rest of us, we are all up in the bleachers
watching them, and we had to pay to get in!
What is Lawsuit & Asset
Protection? Discouraging Litigation: An asset protection
plan is designed to discourage a potential lawsuit before it begins.
In the ordinary course of litigation, the attorney for the plaintiff
will want to make sure that sufficient assets of the defendant
can be reached if the litigation is successful. This is especially
true when the attorney is working for a contingent fee (33 1/3
Of The Recovery, If Any!) Accordingly, prior to commencing a lawsuit,
the plaintiff's attorney will perform a financial investigation
of the target defendant's assets, seeking to locate any real estate,
bank accounts or other valuable property. If the defendant has
substantial, reachable assets the lawsuit will go forward. If
the investigation reveals that The concept of asset protection, in various
forms, has been around for many years. The wealthiest American
and European families have always structured their holdings to
insure that their wealth would remain intact and inviolate, as
it passed from one generation to another, however, for the majority
of the population in the World and the U.S.A.. The American Bar
Association has studies, which indicate that over 70% of the population
in the U.S. don't even have a will, let alone an Estate Plan.
Moreover, for most people and attorneys, they think an Estate
Plan consists of a Living Trust. You will learn in this article
that the Living Trust doesn't provide you with Asset Protection
from your creditors or the Government, but is simply used to avoid
probate, and provide some estate tax benefits. Please understand, just like Og Mandino
said, "Life Is A Game, and you can't play in that game, with
any change of all of winning, unless you known the rules!"
The question that I am addressing in this overview, is, how to
you to accumulate wealth and keep it? It you take the time to read the rules to
the Asset Protection and Estate Planning Game, just like Og Mandino
said, you can work miracles in your life! Of course, life would be much simpler if
the government would just wouldn't tax anybody, however, as you
surely must understand by now, that would work because they need
the money to pay themselves, and it's good for the economy. However,
when you understand that they created the rules to fool the majority
of the population into paying taxes for everything, however, they
have left themselves and the people who can afford to retain the
attorneys and tax experts, the rules to legally avoid or defer
taxes for themselves. Furthermore, it would also be much simpler
if the Courts wouldn't impose liability on anyone for their actions,
however, this wouldn't be good for the majority of the residents
in the U.S. or the world. Therefore, again the lawmakers simply
again created the rules to fool the majority of the population
into not creating an Estate, however, they have left themselves
and the people who can afford to retain the attorneys, the rules
to legally protect their assets for themselves. What are some of the Domestic
Lawsuit & Asset Protection Structures? What are some of the frightening
trends? In recent years, the threat of lawsuits, [The average person is now sued "7" times!] business reversals, divorce and actions by government regulators has made every business owner, property owner and professional acutely aware of the need to create some form of asset protection. Now, the typical asset protection plan is designed to accommodate the needs of those who have accumulated some equity in a home or other real estate, of those, who own a successful business, and others who are trying to preserve a nest egg for their children's education or their own retirement. Did you see the recent five part Good Morning America series on the lawsuit explosion? Millions of Americans felt totally helpless when they realized most attorneys can't event protect their own estate. The really irritating part is many good people don't procrastinate. They took all the right steps. They studied and planned. They thought the government would take care of them. I can't tell you how upsetting it is to hear about a couple in their late fifties in a position to lose all they have worked for. See, it's not their fault! The problem is that the laws keep changing, making it almost impossible for anyone to stay ahead. Especially a non-lawyer. It seems that our lawmakers often want to keep you confused and in the dark. And most advisors are not up to date. For instance, did you know that devastating new lead paint laws have already gone into effect if you own real estate constructed prior to 1981? Also, are you aware that 51.2% of marriages end up in divorce, but one spouse can totally control all assets after the divorce with ADVANCE planning using a "Estate Plan". In the new tax law some good things did occur, but did you know that the current estate tax exemption is only $1million for a single and $2 million for a couple. If Congress doesn't act before, the estate tax contains a "sunset " provision to reinstate the estate, gift and generation-skipping taxes in the year 2011. Moreover, the basis "step-up" is repealed when the estate tax is repealed in 2010. Therefore, taxpayers cannot assume the tax relief will continue indefinitely and should plan accordingly. Don't rely on a whimsical and changeable Congress to solve your estate problem. Right this minute, you can sign legal documents that will immediately cut all your estate taxes. Don't rely on Congress. You can take precise steps now to legally avoid all estate taxes and all probate this very minute!
Answer the following questions
to determine if lawsuit and asset protection are needed for you
and your family: 1. How do you protect yourself if you are
sued for $12 million but only have $1 million in Liability Coverage?
(One professional just had this happen to him).
2. Did you know that even if you put all your assets in the name
of your spouse and children, the courts are now letting "your
creditors" seize the assets in your spouse and children's
name?
3. Four professionals were just sued for a death caused by another
colleague. The reason: improper business organization.
4. A businessman's wife also had to take out bankruptcy because
she was the "secretary" of his corporation.
5. How do you protect your assets when your insurance company
becomes insolvent? 48 insurance companies per year go broke!!
6. If your Malpractice or Liability insurance premiums have skyrocketed
what are the two realistic alternatives?
7. Retirement does not eliminate malpractice exposure! You could
be sued for events that happened many years prior to retirement.
8. Did you know that some law firms in the United States never
allow their clients to use joint tenancy, tenancy by the entireties
or community property forms of ownership because of the tragic
lawsuit exposure such ownership can have?
9. Do you know that as a director or officer of a corporation,
you can lose all your own personal assets if the corporation is
sued?
10. You must learn how to insulate your assets once a suit has
been filed or legal action is pending.
11. Do you know that many courts are now allowing your creditors
to seize your assets held in irrevocable trust and revocable trust?
12. Do you know that some courts are now allowing you to be sued
today for an event that occurred twenty years ago? SO WHO NEEDS ASSET PROTECTION? Doctors, lawyers and other professionals face constant exposure to malpractice lawsuits and jury awards in these cases often reach staggering proportions. These professionals often find that adequate liability coverage is either limited, unavailable or the coverage is so restricted, that the policy has little value. As a result, every professional finds that he is quite literally, betting the house on a successful outcome with every patient or client who comes in the door!
Business owners as well as officers and directors are all common targets of litigation these days. In addition to, negligence and products liability lawsuits, claims by customers, suppliers, employees, lenders and business competitors can easily lead to financial devastation. Also, litigation with government agencies, such as: the IRS or the EPA can tie up a business and its assets for years. Win or lose, these types of cases will inevitably drain a company and its owners of all financial resources!
Anyone who owns rental or commercial property is also a common target for a lawsuit. AS A "Deep Pocket" defendant, a property owner is a virtual magnet for a never-ending barrage of frivolous claims! And if a tragedy should occur and some tenants are seriously injured, potential liability in the millions of dollars can easily exceed the amount of any insurance coverage.
Real Estate developers and builders must deal with potential liability to buyers and users of a property. In California, liability for latent (unseen) defects in a project lasts for 10 years. If that's not bad enough, liability to a lender for, one bad deal can wipe out all of the equity in other projects that has been accumulated over a lifetime!
Even those who are not engaged in business, those who work for someone else or are retired still find that an Asset Protection Plan is an essential element of their overall financial plan. Significant illnesses or injuries may create large uninsured liabilities to doctors and hospitals. An Auto accident, which injures several people, can involve damages, which exceed the amount of insurance coverage, (Even exceeding $1,000,000.00 One-Million Dollars Or More!) LAWSUITS MAY ALLOW EARLY ACCESS TO FUNDS: In many types of litigation the plaintiff can obtain from the court a Pre-Judgment Writ of Attachment or a Pre Judgment Writ or a restraining order effectively freezing all of the defendant's funds pending the outcome of the case. This is often the single most potent weapon available to the plaintiff. Without access to funds to meet business and personal expenses the defendant will not be able to survive financially during the lawsuit. This tactic will usually force a defendant to enter into an unfavorable settlement regardless of the merits of his defense.
The logical conclusion from
all of these scenarios is that anyone who does not take the necessary
steps to protect their accumulated assets is brazenly flirting
with financial disaster! [SO DO IT NOW, NOT LATER WHEN IT MAY BE
TOO LATE!] This would be like trying to get fire insurance after
the fire just started! WHAT ARE THE OBJECTIVE OF
LAWSUIT AND ASSET PROTECTION?: - To make sure that property cannot be tied up in this manner in the event of litigation. An appropriate plan should be designed to keep real-estate assets free of attachments and liens and should allow you undisturbed access to his or her funds during the litigation process.
- EASE OF OPERATION: The "Estate Plan" is easy and convenient for your use and understanding. After the "Estate Plan" has been established, you will be able to deal with your property without difficult or burdensome restrictions.
- NO LOSS OF CONTROL: The "Estate Plan" will allow you continued control and enjoyment over your property.
- PROTECTION OF FAMILY ASSETS: Above all else, The "Estate Plan" will help you to meet its primary purpose of safely insulating and preventing family assets from any kind of attack! If a structure is not properly established within the appropriate time period and with the correct mechanisms in place, the hope of the asset protection features may not be available or subject to attack by creditors.
- REDUCE TAX LIABILITY: The "Estate Plan" may be used to reduce tax liability.
- REDUCE ESTATE TAXES: The "Estate Plan" may be used to reduce estate taxes. The "Estate Plan" is the most powerful strategy available for reducing federal estate taxes.
- A SEPARATE BANK ACCOUNT IS OPENED AS PART OF THE "ESTATE PLAN: An account in the name of the "Estate Plan" will be established at one of the leading International Banks. These funds will remain under your direct control.
- AVOID PROBATE WITH THE "Estate Plan" :If you or your spouse dies all of your assets are collected and inventoried by the local court. Your private family financial affairs are all a matter of public record and are opened to public scrutiny. Your outstanding debts are paid and legal title to the remaining property is then transferred to your heirs. This is a lengthy, inconvenient, expensive and needless process. Your spouse and your family may be denied access to needed funds for an indefinite period. Legal fees and costs may eat up a significant portion of your assets.
- Assets held in an "Estate Plan" isn't subject to probate. If you die, your spouse simply continues to manage and control family assets, with no probate, cost, inconvenience or loss of privacy. Thousands or tens of thousands of dollars can be saved on probate fees and costs, without any disruption to the family's financial affairs.
- Although probate avoidance can also be accomplished with a properly funded living trust, the living trust doesn't provide the Asset Protection and estate planning benefits of the "Estate Plan", and living trust are obsolete for estates over $600,000. Moreover, a living trust can destroy your estate in the event of a lawsuit, serious illness, or elderly care.
- AVOID THE DESTRUCTION OF YOUR ESTATE AS A RESULT OF SERIOUS ILLNESS, OR ELDERLY CARE: A relative can apply for Medicaid (welfare) benefits, but still protect all his or assets.
You will find that your estate plan may
provide you the ultimate, all encompassing Asset Protection and
Estate Plan. Summary Lawsuit and Asset protection is an essential
component of any prudent financial plan. In today's dangerous
business climate, a lifetime of successful accomplishments can
be obliterated by a single unexpected event. The objective of
asset protection is to insure a level of certainty and security
as one makes his or her way through the hazards of everyday life. Don't get lulled into a false sense of security.
That's a trap. I'm sure you read all the current news and information
and that's good. There is only one legal tool in America
that protects your assets from lawsuits and this is a proper "Estate
Plan" set up for you and your family. If you don't have an Estate Plan",
the government will have a plan for you! The problem is nobody prints the facts until
it's too late. And when they do print the information, you get
only half of the story. I have seen overly confident types pay
as much as $50,000 just to get out of a jam they've created by
not having the right information. Moreover, the "Estate Plan"
can also work with your off shore "Estate Plan" as well,
and give you the added protection and privacy that you may need
as well. And Remember, Savvy
Families Plan Ahead 5 Years, Because, It's
Not What You Earn, But What You Keep! |
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