This website was primarily created to support our book
Asset Protection: Concepts and Strategies
(McGraw-Hill 2004). Because of the publishing agreement with
McGraw-Hill Companies, Inc., certain articles which were used as
the basis for that book have been withdrawn from internet
publication. It is suggested that the book be used as the
primary resource, and that the other materials on this website
should be used as supporting materials only as needed.
Other technologies do not stand still, and neither does the
technology of asset protection. We are continually improving on
existing structures and finding new and unique methods to preserve
wealth. Creditors have developed strategies to defeat older
strategies, but in most cases have not ever heard about or
considered these new strategies, so they have the advantage of being
novel in addition to building on existing favorable law.
For our famous summary chart showing
exemptions on a state-by-state basis for IRAs and ERISA
plans, homestead, life insurance and annuities.
Click Here
For state-specific information, click on
the particular state:
Resources for determining when
debtor planning can properly be done, and the
consequences to planners of doing asset protection
in circumstances where it should not be done.
Our newsletter Developments in Asset
Protection and Wealth Preservation covers new cases and
events in wealth preservation planning, creditor-debtor law,
and asset protection. It is widely used by other
professionals to keep them apprised of the latest changes in
the law. And it's free!
Exemption planning considers the use of
statutory exemptions from collections as set forth by either
Congress or the state legislatures. The goal of such
planning is to maximize the debtor's use of the available
exemptions. The debtor's fullest use of exemption planning
may be significantly restricted by the 2005 changes to the
Bankruptcy Code, unless the planning is done well in
advance.
Transactional planning considers the use
of various types of transfers to take non-exempt assets off
the debtor's balance sheet and thus render those assets
unavailable to creditors. A goal of transaction planning is
to avoid the application of the fraudulent transfer laws,
which typically requires that the planning be done well in
advance of any financial troubles suffered by the debtor.
The state legislatures have long
recognized the advantages of allowing business entities to
offer limited liability to their investors. Thus, a staple
of asset protection planning is the use of corporations,
partnerships, and hybrid entities such as limited liability
companies.
Since its release in late 2006, Jay
Adkisson's book on captive insurance companies has become
the all-time captive insurance bestseller, providing a basic
introduction to captives and related structures and how they
are properly utilized within the context of the client's
overall business and estate planning.
One of the traditional techniques
for protecting assets, going back literally hundreds
years of Anglo-American jurisprudence, trusts offer
tremendous benefits when used appropriate
circumstances and often are underutilized for
planning. Caution, however, that certain transfers
to trusts and types of trusts have been voided by
the state legislatures or by Congress in the
bankruptcy code.
The use of foreign jurisdiction
for asset protection planning offers certain
advantages and disadvantages. Unfortunately, the
marketing hype of offshore planning has seemingly
drowned out any rational discussion of whether such
planning is necessary or worth the reporting hassles
in most cases.
The offshore heydays of the
mid-1990s are long over. Today, "going offshore" is
more difficult than ever, and numerous legal and tax
landmines abound. This is why most asset protection
is done domestically and why the best advisors only
use offshore planning in rare or special
circumstances and not for anything like ordinary
client planning.
Accounts
receivable financing involves borrowing against your
receivables on an interest-only basis and then investing the
proceeds in a tax-deferred annuity or life insurance
product. The first goal is to successfully arbitrage the
simple interest you pay on the loan against the compounded
growth within the annuity or life insurance product to
increase your retirement funding. The second goal is to
remove the value of the accounts receivable away from the
reach of business creditors and place it into an asset
protected environment.
But are these goals really met? Yes or No, depending on
how the program is structured. Not all accounts receivable
financing programs are alike and, as you may find out too
late, nobody looks out for your interests in these
transactions.
Financing Accounts Receivable for Retirement and Asset
Protection by Ronald J. Adkisson (Jay's father)
presents a candid look at the subject, including the
mechanics of such programs, economic underpinnings, asset
protection and tax issues.
These are strategies that are
overmarketed, oversold, and have either failed outright,
have obvious flaws, or are commonly misused to the point
where they have little effectiveness. These strategies
should be avoided.
Foreign Asset Protection Trust (FAPT) a/ka/ "Offshore Trust" and "International Estate
Planning Trust" (IEPT)
Once upon a time, offshore trusts were thought of as the
strongest asset protection structure -- the one castle whose
walls that creditors could never scale. Then, creditors
figured out that they didn't have to scale the castle's
walls, but merely have the debtor held in jail for contempt
until the assets came out.
Domestic Asset Protection
Trust (DAPT) a/k/a "Alaska Trust" or "Delaware Trust" or "Nevada
Trust"
Designed to compete for trust business with the offshore
trust havens, the DAPT is heavily marketed by trust
companies in Alaska and Delaware who will not tell you one
important secret: They don't work, because -- among several
reasons -- of a 10-year clawback enacted with the 2005
bankruptcy reforms.
Family Limited Partnership (FLP)
Designed as a tool to transfer the family business with less
gift or estate taxes, the FLP is often sold as an asset
protection vehicle. Trouble is: There is no such thing
legally as a "Family Limited Partnership" and ordinary
limited partnerships are meant to serve commercial purposes
and not as personal piggy banks.
Nevada Corporations and variant the Nevada LLC
Widely sold for asset protection to persons in states
outside of Nevada, these corporations (and LLCs) have no
significant advantages over entities created in other
states. About all they ordinarily accomplish is to
unnecessarily increase the annual fees paid, and
occasionally create .expensive messes in regard to real
property ownership
Nothing in this website is any substitute for the legal advice or opinion of a licensed attorney in your state. This website is simply a starting resource for information on the topics herein and does not claim to provide any definitive answer and should not be relied upon for any purposes whatsoever. Non-professionals should seek the assistance of a licensed attorney in their jurisdictions, and professionals should please consult the primary source materials such as statutes and case laws directly. Nothing in this website may be relied upon under IRS Circular 230 to avoid penalties for an incorrect tax position.
Adkisson Publishing Inc. is not a law firm and does not provide any legal service of any nature whatsoever. Adkisson Publishing Inc. is a publisher of books, websites and provides speakers on various topics. The person responsible for this website is Jay D. Adkisson in his capacity of President of Adkisson Publishing Inc. and questions regarding it should be addressed to him at Adkisson Publishing, Inc., P.O. Box 7088, Laguna Niguel, CA 92677.
© 2008 by
Adkisson Publishing Inc. All rights reserved. No portion of this page or any portion of this website may be reprinted or otherwise duplicated without express written permission of
Adkisson Publishing LLP. Legal issues should be faxed to (877) 698-0678.