The belief that there could be a ‘one-size fits all’ Asset Protection plan is a common myth that needs to be destroyed. No such thing exists.
That’s not to say some “Asset Protection” planners won’t peddle that one quick fix or magic bullet. For instance, quite a few planners promote Nevada corporations as an Asset Protection answer for everyone. Others may sell only international trusts or limited partnerships.
However, these entities are only one of many possible firewalls. That’s all they are. But are they your right firewall? Your planner must offer you the entire range of protective firewalls because any firewall is only one more tool in the planner’s toolbox.
No one firewall is everybody’s lawsuit-proofing answer. A good planner adeptly uses every possible protective tool. For example, you want a planner with expertise in both international and domestic protective strategies because if you have a high net worth you’ll probably need both domestic and international planning. Your planner must skillfully provide both. Yet, few planners have this dual expertise.
The point is to choose a planner who can give you the complete arsenal of protective tools. Anything less reduces your options and protection. It’s common sense. Would you go to a physician who prescribes the same medication to every patient? Nor is it simple to customize your one “best” plan.
Your planner must consider many factors:
Your state laws
The nature and value of the assets to be protected
The liability (if any) to be protected against
Whether you need preventative or crisis planning
Your financial (Estate Planning, investment, and tax) situation
The strategies you’ll be most comfortable with
Your personal situation (age, marital status, etc.).
There are other issues and considerations on top of these. Only when we expertly blend these many considerations could an Asset Protection planner arrive at your best plan.
But it’s only your best plan at that given point in time and against a given danger -- if one exists. Customization is the essence of good planning. Cookie cutter planning is bad planning.