It seems that do-it-yourself asset protection planning has grown in popularity on various websites. Most of these sites proclaim cost effective personalized planning but bury their disclaimers. When it comes to tax and asset protection, the more knowledge you have, the less you will owe. The do-it-yourself asset protection planning approach seldom works; because most people do not understand the subtle aspects of asset protection planning.
Here are a few points for you to ponder:
* Follow the terms of your trust or operating agreement. Actions outside or contrary to what is presented in your documents will give a court ample reason to pierce your plan.
* Never state in your LLC operating agreement, trust, or other entity your purpose in creating the plan was for asset protection. You must state a legitimate business purpose such as hard money loans, real estate investing, asset consolidation, etc. Also, never testify this was your purpose.
* Be attuned to how your entity should be operated to maintain its separate existence. Do not set up a structure that has no economic substance, it should serve a legitimate purpose.
* And lastly, don’t try to do this yourself, it is much harder than it looks. In the eyes of the courts, ignorance is a voluntary misfortune.
If you would like to discuss your plans with us, send an email to Lgpotter33@gmail.com today.