There is a frequent misconception that anything to do with asset protection must inevitably involve higher taxes, increased IRS scrutiny and other undesirable situations. Nothing could be further from the truth. Asset protection is not illegal, but should not be considered as a means of saving taxes. In fact, our asset protection plans are tax neutral, which means that they do not affect your taxes in any way.

However, there are a number of asset protection lawyers who promise you tax savings on your asset protection plan. We can’t stress this enough – there is no room for tax savings in your asset protection plan. Asset protection plans are drawn up to protect your assets against creditors or plaintiffs. They are not meant to be used as a tax saving tool. In fact, manipulation of your asset protection plans to avoid taxes will only lead to increased scrutiny by the IRS, and all the consequences from it. So, if anyone promises you that their asset protection plan will save you taxes, don’t walk away. Run.

As far as the IRS and taxes are concerned, asset protection planning needs to be an absolutely transparent process. You may need to submit additional forms as part of your plan. This documentation will make it clear to the IRS that you have nothing to hide and that your asset protection is perfectly and legally in place.

Feel free to contact our office now, or at any time during this course to get an analysis with our in-house Asset Protection Attorney or Analyst, please contact Kitty Lucarini at 1 (800) 231-7112 to schedule the phone appointment.

About the Author: Doug

Douglass S. Lodmell is an expert in estate planning, taxation and strategic asset protection for domestic and international clients. Douglass is the founder of Asset Protection Council & Lodmell & Lodmell Law Firm.