Asset protection, for better or worse, is not a game of silver bullets or invincible armor. Unfortunately, this fact of life will never stop certain salesmen from marketing asset protection that way and certain debtors from buying into it.
A tale of gullibility, faked complexity, and predictable endings can be found in a recent Forbes article titled “Bill 'Bulletproof A$$et Protection' Reed's Complex Plan Pierced By Nominee And Alter Ego Theories.” The case of U.S. v. Cohen, C.D.Ill. Case No. 08-3282 (Mar. 8, 2013), chronicles an asset protection plan so frightfully poor it could only be described as the “Bulletproof A$$et Protection.” Just the label used to market this “asset protection” scheme should give pause to the prudent.
Asset protection is all about understanding the legal nature of your assets and the potential risks that may threaten your future use and enjoyment of those assets. Certainly state and federal laws offer varying degrees of protection, as do time-tested legal strategies.
Asset protection is as much art as science, but not magic. This is true whether you live in Overland Park or Omaha.Remember: When making your financial, tax and estate plans, don't go it alone. Be sure to engage competent professional counsel, especially when it comes to asset protection concerns.
Reference: Forbes (March 31, 2013) “Bill 'Bulletproof A$$et Protection' Reed's Complex Plan Pierced By Nominee And Alter Ego Theories”