Ch. 8: Methodology of Asset Protection

• Jurisdictional Methodology

Synopsis: Discusses how asset protection planning takes advantage of cross-jurisdictional issues.

• Integrational Methodology

Synopsis: Discusses how asset protection planning is integrated into other business, succession and other planning done for the client.

• Unbundling and Separation Methodology

Synopsis: Discusses the importance of unbundling the components of key assets, and protecting the components separately.

Definition: Unbundling – The process of breaking an asset into components and treating the components as separate assets.

Definition: Complex Asset – An asset that is capable of being broken into component parts.

• Opportunity Shifting

Synopsis: Discusses the titling of a wealth-creating asset outside the existing structure, for purposes of transferring wealth before it generated or received.

Definition: Opportunity Shifting – The process of putting new wealth-creating assets into distanced structures, so that the wealth is created within those structures and not the existing one.

• Structural Methodology versus Transfer Methodology

Synopsis: Discusses the differences and relative importance between structural methodology and transfer methodology in the creation of an asset protection plan.

Definition: Structural Methodology – The decision-making process for choosing the type of structure that will be utilized hold particular assets.

Definition: Transfer Methodology – The decision-making process for choosing the type of transfer that will be used to move assets to a particular structure.

• Challenge Analysis

  Synopsis: Discusses Challenge Analysis in its predominant forms.

  Definition: Challenge Analysis – The process of selecting forms of structures and transfers based upon what creditors know about those structures and transfers, and the level of efforts being made by creditors to penetrate them and set them aside.