Buying Forms to Set-Up an Asset Protection Plan?
We deal with this question on a frequent basis. Through seminars and on websites, do it yourself asset protection forms are offered for sale. A few hundred dollars or less, buys you the forms for a Family Limited Partnership, LLC or trust. The promoters say follow some simple directions and you will have a complete asset protection plan.
Here is the problem. There is no chance that your “plan” will be successful. And you won’t learn that until it is too late-until you are sued and lose everything. If your goal was to protect your home and savings in the event of a lawsuit, buying forms wastedmore than just a few hundred dollars. it wasted all you have. What could have been legally protected wasn’t.
Two or three times each week we get calls from people being sued, asking us to review their FLP or trust which was created with a form that they purchased at a seminar. Most of the time, almost always, there is nothing we can do to help. The plan and the concept have nothing to do with the individual. The documentation is incorrect. Assets are not where they are supposed to be. The wrong law is applied. The ownership is wrong. Proper forms were never filed. The FLP Agreement, sold by the promoter, was old and stale-relying on outdated statutes and case law that had changed years ago. This situation is a disaster and by then it is too late to change things.
There is no attorney-client privilege with a form salesman or consultant. In litigation, all communications can and will be subpoenaed.
There are ways to be smart and to save money when you set-up your asset protection plan but buying printed forms for a canned asset protection plan that you think is right, is the worst way to save some money. If you believe that asset protection is worthwhile and important to you, have it done correctly and efficiently by an attorney who specializes in the field.