TRUST Forms, Living Revocable Family Trust, Irrevocable Trusts, Asset Protection Trusts, Estate Planning, Legacy Trusts, Dynasty Trusts, Living Revocable Family Trusts ASSET PROTECTION FACTS

Asset Planning Tips

1. Make a basic list of assets.

2. Make a basic list of people that could control assets if you were unable to.

3. Make a list of people that you want to benefit when you are ready to distribute assets.

4. Realize that anyone can get into a lawsuit, especially if they have assets.

5. Asset protection requires you to take action BEFORE problems arise, before health problems, before legal attacks, before there are threats to assets, before making other decisions. You can even use it as a private prenuptial plan.

TIMING - Wealth may be threatened at any time and without adequate warning.

LEGAL PROTECTION - Asset protection is legal as a planning tool, NOT as a tool to avoid existing problems.

BENEFICIARIES - Anyone can be a Beneficiary, even a child or person with problems.

TRUSTEES – Anyone can be a Trustee, even a Beneficiary.

RULES – The maker of the trust makes the rules, so long as they do not violate laws regarding religion, or ethnicity, or promote criminal acts.

DISCLOSURE - Asset protection does not require that you notify beneficiaries or most outsiders.  You can keep a low profile, reduce exposure from computer records, reduce credit information and risks, eliminate publicity, have private investing.  You can maintain separation of assets, investors, current, former, and future family members, associates, risks, and taxes. 

FLEXABILITY – Asset protection can be used to avoid business disagreements, pre-nuptial agreements, divorce problems, partnership negotiations, buy-out agreements, reduce insurance costs, provide for incompetent persons, plan for medical costs and conditions, plan for retirement, plan for taxes, plan for kids or seniors, and much more.

PROTECT ALL ASSETS. Check to make sure that you have protected all of your assets, not just the major ones.

USE PROFESSIONALS. To design the most effective plan possible you need to include all of your financial professionals including your tax advisor, financial planner, and an attorney who specializes in the field.

It is not necessary to use offshore trusts or do offshore investing.  If you must go offshore, ensure that you are in compliance with all laws and reporting requirements.

Uniform Fraudulent Transfer Act

The Uniform Fraudulent Transfer Act was adopted for all transfers and obligations that prevent  placing assets beyond the reach of existing creditors.  The court will use all relevant evidence to determine if there has been a fraudulent transfer including:

1. "the debtor had removed or concealed assets,"

2. "the transfer was to an insider"

3. "the debtor had retained possession or control of the property transferred,"

4. "the transfer or obligation was disclosed or concealed,"

5. "the debtor was sued or threatened with suit before the transfer was made or the obligation incurred,"

6. "the transfer was of substantially all the debtor’s assets,"

7. "the debtor has absconded,"

8. "the value of consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred,"

9. "the debtor was insolvent or became insolvent shortly after the transfer was made or the obligation incurred,"

10. "the transfer had occurred shortly before or shortly after a substantial debt was incurred," or

11. "the debtor had transferred the essential assets of the business to a lien or who had transferred the assets to an insider of the debtor."

NOTE: There are both civil and criminal penalties against a debtor who fraudulently moves property with the intent to defraud and can be considered a crime and a felony.

Advantages of a Revocable Trust

- Avoids probate for your assets validly placed therein.

- Upon death, allows quick distribution of trust assets to your beneficiaries.

- Keeps the assets transferred through your trust private and confidential.

- The Probate Court has no control over trust assets.

- Avoids Conservatorship if you become incompetent, or incapacitated.

- May help to reduce emotional stress on your family.

- Completely flexible because you can change it at any time.

Durable Powers of Attorney


Durable Powers of Attorney are legal documents authorizing a qualified person of your choosing to make health and financial decisions for you, or take action on your behalf, in the event that you become incapacitated or declared incompetent.

Main Purpose

- Avoids Conservatorship – court appointed guardian.

- Provides flexibility to the named spouse if incapacitation occurs.

- Designates a successor should both spouses become unable to act.

Living Will

Also called a "Advance Health Care Directive." This document is used to instruct health care providers of the principal’s wishes concerning medical treatment, life saving and life sustaining procedures. A Living Will provides an individual an advance opportunity to direct how certain medical and life saving issues are to be handled. Living Wills are frequently used to avoid artificially prolonged life in accordance with the desires expressed by the maker of the Living Will.

Reasons to have Durable Powers of Attorney

- A person of your own choosing will handle your health and financial affairs if necessary.

  This is usually your spouse or one of your children, but it can be any qualified person.

- It enables you to keep your affairs in the family and out of public records of the courts.

- It avoids costs of guardianship (attorney fees, court costs, bonds).

Delaware Corporations

In recent years more than 50% of all corporations have been incorporated in Delaware. The state of Delaware is well equipped for corporations because it has a separate court for the adjudication of corporate litigation resulting in extensive case law for corporate matters. Delaware provides many tax benefits including: no state corporate tax on interest or other investment income, no state sales tax, no ad-valorem or value added tax, and no taxes on business transactions. A single person can hold all offices including Director, Shareholder, President, Secretary, and Treasurer. The corporate headquarters of Delaware corporations can be located anywhere in the world.

Delaware corporation benefits include:

- Established case law

- Tax Benefits

- Stockholders do not have to be U.S. Citizens

- A single person can hold all offices

- Directors can change the corporate bylaws

- Shareholder liability is limited to the value of stock owned in the company

- Potential limited director liability for breach of fiduciary duty

California Corporations

Incorporating a business in California offers a number of advantages that aid in the protection of both assets and privacy.
A California Corporation will protect the individual from personal liability. A single individual can hold all offices including: Director, Shareholder, President, Secretary, and Treasurer. Incorporating in
California can allow you to take advantage of tax deductible benefits such as health, accident, disability insurance, life insurance, and medical reimbursement plans. Corporations that have fewer than 75 shareholders can elect S corporation status which allows for the profits to flow through the company and directly to the shareholders of the corporation without being taxed.

The benefits of a California corporation include:

- Personal liability protection

- Stockholders names are not public

- Availability of corporate retirement plans

- Corporate fringe benefits

- Unending corporation existence

- Tax benefits

- Possible S corporation status

- A single person can hold all offices

- Available to professionals: Doctors, Dentists, Nurses, Attorneys, Pharmacists, Accountants, etc.


Nevada Corporations


The combination of Nevada’s thriving business climate combined with their extremely low state and local taxes have made it a desirable location for business incorporation. In Nevada the names of stockholders are not made public and there is no information exchange program with the Internal Revenue Service. This offers greater protection of your privacy. The Nevada legislature is committed to making Nevada corporate law attractive and flexible. A few of the many tax benefits include no state personal income tax, and no state corporate tax on profits or major annual fees.


Nevada corporation benefits include:

- Tax Benefits

- Stockholders do not have to be U.S. Citizens

- A single person can change the corporate bylaws

- Relaxed annual corporate reporting requirements

- Increased privacy for stockholders

- No information exchange with the Internal Revenue Service

Limited Liability Companies (LLC)

Limited Liability Companies are a preferred asset protection vehicle of many business owners as well as real estate owners. The LLC is a non-corporate business entity that is taxed as a partnership rather than a corporation. As a result of being taxed as a partnership, an LLC is not subject to corporate income tax. Income is only taxed as personal income when you receive income or assets from the LLC. The LLC also protects the personal assets of the members and the officers of the LLC from creditors. The transfer of shares of an LLC can be greatly restricted by the operating agreement of that company. Even if a creditor obtained a membership interest in the LLC, they would only be entitled to their share of profits and would not become a voting member of the LLC unless the board voted unanimously. This provides the members greater control over both the present and future management of the LLC. The benefits of forming an LLC begin immediately upon formation and registration with the Secretary of State.

Advantages of an LLC include:

- Asset Protection

- Avoidance of double taxation

- Limited liability of officers’ personal assets

- Reduced paperwork – no requirement to prepare annual company minutes

- Benefits begin immediately

- Continuity of Life

Limited Partnerships

A limited partnership is an effective asset protection vehicle that allows you to retain control of your property while granting the direct ownership to the partnership. Often you or your spouse, or a company owned by you will be the general partners, allowing you complete control and management of the partnership. Children or other trusted designees can also be brought in as limited partners in order to transfer property to them. The partnership is an effective tool because under partnership statutes, a creditor who has obtained a judgment against you has no right to take any property from the partnership. The creditor would only be able to attach any payments made to you on behalf of the partnership.

Advantages of owning a limited partnership include:

- Asset Protection

- You or your spouse, or a corporation (owned by you), may become general partners, retaining complete control of the partnership

- You or your spouse, or your Living Trust may become limited partners, sharing in the profits and losses but having no decision making power

- Children can be named as limited partners

- All property is transferred into the partnership