In the real world, asset preservation planning is not a game of silver bullets or invincible armor. However, this doesn’t prevent asset preservation hucksters from marketing their "services" that way, and it doesn't prevent an unsophisticated public 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$$et Protection' Reed's
Complex Plan Pierced By Nominee And Alter Ego Theories.” The case of U.S. v. Cohen, C.D.Ill. Case No. 08-3282 (Mar. 8, 2013),
chronicles an asset preservation plan that blew up in the faces of its intended beneficiaries. Just the name used to market the scheme, “Bulletproof A$$et Protection,” 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. State and federal laws
offer varying degrees of protection, as do time-tested legal strategies. Understanding the applicable rules and the relative advantages and limitations of different strategies is critical. Asset preservation planning involves art as well as science, but it’s not magic.