Tax Savings-Form A Personal Asset Protection Plan
By Lee R. Phillips
Tax savings begins by getting an asset protection plan in place. The truth is that tax planning, estate planning, identity theft prevention, business structuring all meld together to form your personal asset protection plan. Today, asset protection doesn’t mean the home security alarm system. You have a better chance today of losing money due to a legal or financial attack than you do the common thief. Your personal tax savings plan has to start with a solid legal foundation. You can’t build a building from the roof down. You have to have a solid foundation first. Likewise, you can’t build you asset protection plan from the roof down. Your asset protection plan has to have a solid foundation.
Your asset protection plan must be built on a foundation of legal components. An attorney only has so many asset protection components available. The standard living trusts (not good asset protection tools), corporations, limited liability companies, and limited partnerships are the first line of asset protection components. However, your advisor may overlook the ERISA plans, IRAs, life insurance policies, and other “commercial” components. No, I’m not selling life insurance, but these components have huge tax savings, income tax, estate tax, and asset protection potential. They will knit the standard legal asset protection components together and make a really strong foundation and structure.
The IRS is actually the major threat to your financial security and your asset protection plan. When you add up the income tax (federal income tax and state income tax), sales tax, property tax, business property tax, franchise tax on your little company, and the possible new VAT tax, you know that between 50 to 80 percent of your annual income is attacked and killed. You absolutely know the attack is coming from the IRS. That’s the first thing your asset protection plan has to address.
In addition to the IRS attacks, your financial security can be attacked through lawsuits, death, divorce, accidents, illnesses and a dozen other means. Actually, just like the IRS, these attacks are guaranteed to come, but hopefully they are not a continuous attack like the IRS mounts.
Your attorneys may have already set you up with an asset protection plan. Unfortunately, the key words in that sentence are “set you up.” Over 80% of the people we see have an elaborate set up, but they get little or no tax advantage out of it. It won’t protect them when the asset protection attack comes. They will be frustrated, because they paid a fortune for something that isn’t right. Even if the plan is impeccable from a legal stand point, the people don’t know how use the plan. A stack of legal documents isn’t going to give you the asset protection you deserve.
We are dedicated to helping you get your asset protection AND tax savings plan s up and running. There is a basic foundation that everyone needs to start with. Protecting Your Financial Future details how you implement your asset protection foundation and, more importantly, how you operated your asset protection structure. Even if the fat cat lawyers have got you set up, you had better use Protecting Your Financial Future as a second opinion and an instruction book so you can use your asset protection plan correctly.
Tax Savings with Asset Protection
Asset protection is something I learned on the streets in the school of hard knocks. By-the-way, if you are learning your lessons in the school of hard knocks, you’re paying too much for your education. My wife, three little children and I had everything taken away from us – everything we had worked our whole life for – just because I got sick. I was a lawyer and the buzzards picked us clean. I didn’t have an asset protection plan – I do now! My mission is to see to it that as many people as will hear my cry will get a good asset protection plan and not have their asset protection plan blow up in their face when they are under fire.
P.S. Lawyers love to have the plans implode. It’s called work guarantees and more billable hours. OH, your attorney is different. Yah right. Get Protecting Your Financial Future. It’s an easy read. I make my points in stories – my story and the best stories of my thousands of clients over 30 years of practice. (The names have been changed to protect the innocent.) It has been edited page by page by the former assistant general counsel to the IRS. It is technical enough that the Certified Financial Planners (CFPs) will give their members continuing education for reading it. It was selected as a TimeWarner Book-of-the-Month Club book. TimeWarner picks one out of over 500 books it reviews to throw into the book club recommendations. It is readable enough they think little old ladies should read it in their book club.
Get started, and I will lead you all the way out and around the asset protection problems. Because I have been there and had the experience, I can lead you out and around the problems a lot better than a lawyer that has never been there. I can cry in the wind, and it won’t help you until you get started.
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