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The desire to protect ALL asset and the unwillingness to accept competent experienced advice that not all assets may be protected, and, that any attempt to do so could result in a very costly judicial determination that doing so constituted a "fraudulent conveyance".
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Does a potential liability already exist (e.g., you just rear-ended a car in front of you at a stop sign) even though no lawsuit has yet been filed nor any judgement been issued?
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Lack of attorney-client privacy privilege when materials are purchased off of the internet.
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"Cookie-cutter" do-it-yourself ducuments that may not provide the desired protection.
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Inability to consult with a licensed practitioner, experienced in tax and asset protection planning, on issues before, during and after the asset protection structure is implemented.
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What assets may already be protected under state law, but could lose such protection if an improper transfer or structure is utilized?
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What assets should be transferred to an asset protection structure?
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What assets should not be transferred to an asset protection structure?
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What could be the adverse consequences (e.g., alter ego judicial determination) if the wrong assets are transfered to an asset protection structure?
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What is the best structure to utilize under the client's circumstances?
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What is the best jurisdiction (i.e., state or country) in which to establish an asset protection structure?
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What are the disadvantages of Family Limited Partnerships ("FLP's") when it comes to asset protection?
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What are the disadvantages of Limited Liability Companies ("LLC's") when it comes to asset protection?
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Contrary to the claimsof the uninformed and/or the dishonest, in only 9 states for FLP's (and 15 states for LLC's) do the statues specifically provide that a charging order is a creditor's sole remedy? As a result, in most of the remaining states a judgment creditor can subsequently petition the court and obtain the foreclosure and sale of the debtor's charged interest.
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Should all of the applicable assets be transferred into one FLP, or LLC?
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Can all assets (i.e., real estate and personal) obtain equal protection?
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When an FLP and/or LLC is utilized, is a charging order the only remedy available to a judgment creditor? NO! A judgment creditor may also petition the court arguing such issues as: (a) fraudulent conveyance; (b) alter ego; (c) reverse veil piercing; (d) resulting trust; (e) constructive trust; and (f) creditor's bill.
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Out of the 9 FLP states and the 15 LLC states, only 7 of these states' statutes actually contain additional protective language.
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When is it appropriate to implement a Domestic Asset Protection Trust ("DAPT")? Are they actually viable? And, if so, which are the best states, out of the 9 states which have enacted some form of asset protection statute, in which to establish a DAPT?
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When is it appropriate to implement an Offshore Asset Protection Trust ("OAPT")? Are they actually viable? And, if so, which are the best countries in which to establish an OAPT?
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How does a client protect his asset from loss due to the mismanagement or dishonesty of a foreign (domestic or offshore) Trustee?
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On a scale of 1 to 10, with 10 being the best, what is the worse asset protection structure? The worst structures would include: (a) transfers of all assets solely into the name of a spouse, child or friend; (b) the use of false liens; (c) use of a corporation primarily for asset protection; and, (d) use of an FLP and/orLLC without other protective structures.
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On a scale of 1 to 10, what is the best asset protection structure? The use of a properly drafted LLC or FLP achieves about a 4 on this scale. An LLC or FLP coupled with a DAPT increases to about a 7, and, and LLC or FLP coupled with an OAPT achieves about a 9.
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Properly drafted comprehensive asset protection OAPT or DAPT Trust agreements chould consist of not less than 90 pages of single-spaced text.
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Properly drafted comprehensive LLC Operating agreements should consist of at least 50 pages of single-spaced text. The failure to implement such an Operating agreement could result in extremely adverse results in the event of a creditor attack.
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What is the best, most cost effective asset protection structure for that particular client? Only the client, after and in-depth consultation with an experienced asset protection law firm can make that dtermination. NOTE: Research indicates that there are really only about 14 law firms who are experienced and highly qualified in this field of law.
