Principles of Asset Protection Planning Part 3 of 3

Another principle you need to work with is comfort. If the client feels uncomfortable re-titling the assets, then you as the lawyer shouldn’t go along with the process, so you might find another way to do it that brings less discomfort to them.

The primary aspect that makes people refuse to re-title their assets is the thought of relinquishing control. It is a good idea for the asset protection lawyer in New York to try and retain control of the asset for the client.

The first meeting with the client is to make them comfortable with the proposed plan. As a planner, you need to have more than one plan to propose. This is because when you offer this plan to the client and he refuses; opt for another one that will give the perfect fit.

For instance, we have clients that believe in keeping their money in the local bank to access funds when they feel like. Now imagine introducing such a client to the option of transferring their savings to an offshore bank with a trustee that they don’t know at all?

A client can also be uncomfortable if he doesn’t understand the plan. A flow diagram on an asset protection lawyer’s writing pad might seem very simple to the lawyer, but be jargon to the client.

So, educate the client, and he will be comfortable.

The asset protection plan that you come up with needs to minimize liability. Essentially, the strategy places the assets in different categories so that the creditor can target only a few, not all of them. For instance, a plan that only focuses on personal assets and leaves out business processes aren’t complete.

A good plan also needs to transfer liability to a third party.

You can have hundreds of firewalls, but if the basic plan doesn’t work, then you aren’t achieving your purpose – protecting the assets.

Any planner that doesn’t guarantee that their plan can work is not worth your time. You need to be certain that the plan that has been put in place works. If the plan has loopholes, then the creditors will have a field day.

Having unquestionable protection is akin to having no protection at all. This is because your assets won’t be protected at all. Work with an asset protection lawyer that understands what needs to be done and does it perfectly.

As an asset protection lawyer, I have seen a lot of plans that have made clients lose their property easily. Most plans fail because they use a wrong entity for a situation that needs a completely different strategy. For instance, don’t use a domestic trust to protect assets that you still need to maintain full control.

Another example is when you decide to use a business entity to hold personal assets. Instead, use tools such as non-self-settled trusts and exemption planning.

We have looked at the top principles of asset protection planning. When you have a way to protect your assets, you need a plan that you are comfortable with. The plan needs to put in mind the cost of your estate and what firewalls need to be in place.

It is always good to start with the basic plan as you move to another level. The basic plan comes with modules that you add depending on the needs of planning. Remember that your estate plan isn’t the same to other estate plans, which is why the modules you use for protecting it might not work for someone else.

Take time to speak to a qualified asset protection lawyer so that you understand the various options that you have, then choose the best. Remember that cheap is always expensive; therefore perform comparison shopping to get the best option for your needs.

The lawyer is able to draft the best plan for you, but it is upon you to update and maintain it. If it is too expensive to maintain, then you won’t be comfortable with it at all.