There are several advantages to setting up an offshore asset protection trust in Belize. For one, the country has a well-established judicial framework that follows English common law. That is a hangover from the country’s colonial past, and it means that assets protection attorneys find it easier to deal with the judicial system in the country. The Belize trust legislation comes with highly flexible features that include complete exemption from taxes, including gift, estate, personal and business tax. The country has a well-established communications network and a sound judicial system based on English common law.

Belize’s offshore trust laws are flexible, and allow for simple documentation. They contain easy trustee appointment and removal provisions. The asset protection features of this legislation are extremely aggressive, and a trust may not be set aside based on claims by creditors or plaintiffs, or even by the order of any foreign court. A Belize offshore trust offers great security even if your assets are being attacked as part of a divorce, or as part of a bankruptcy.

Besides there are other advantages which can make a difference. For instance, English is the predominant language in Belize, spoken by most of the people here. Like Cook’s Island and Nevis, Belize also makes it hard for creditors to initiate litigation against you on the island.

None of this means that a Belize asset protection trust is ideal for your situation or for your assets. An asset protection attorney will take your requirements into consideration to determine whether setting up an offshore trust in Belize is ideal for you.

Belize for Offshore Asset Protection Trusts is a post from: Lodmell & Lodmell, the Nation's #1 Asset Protection Law Firm

A creditor may use a Charging Order to reach your assets through any distributions from the partnership. In other words, if the creditor brings a Charging Order, the general partner may be required to hand over to the creditor any distributions from the partnership which would otherwise go to the debtor partner. The Charging Order gives the creditor access to distributions from the partnership.

A creditor with a Charging Order is likely to come back to the table to negotiate a settlement, because he may not want to wait long for distributions. However, if your creditor does not mind waiting for a long period of time, he will eventually be the recipient of any distributions from the partnership. There’s also another disadvantage, in that during this period of time, you will be deprived of enjoying your assets.

Obviously, the higher the value of the assets, the less desirable an FLP. In fact, we would not advise an FLP for individuals having a net worth of above $500,000. The reason for that is that the higher the value, the more incentive plaintiff’s attorneys have to wait it out and eventually reach your assets.

Besides, creditors might even try to break open the FLP. That can and does happen, and much more often than you know. That’s the reason why we don’t recommend an FLP as a foolproof, reliable and sole method of asset protection.

How Does a Changing Order Impact Your FLP? is a post from: Lodmell & Lodmell, the Nation's #1 Asset Protection Law Firm

www.youtube.com/watch?v=KJIuf77vrLs

Over the past 2 years I have posted over 4 dozen videos on the subject of Asset Protection, and several related topics. And in all those videos I have gotten more feedback on a single video done in 2008 titled “The Top 3 Wealth Preservation Issues 2008“. If you recall that video, the issues were:

1. The Economy
2. Real Estate
3. Employee Lawsuits

At the time all 3 of these issues were still in their infancy. The Economy was still robust and the Real Estate crash had not hit yet the minds of most of America.  Employee lawsuits were already sharply on the rise, but there was still little talk or buzz about them.

Today we can all see that the first 2 issues now dominate the collective consciousness of virtually everyone in America. And the final issue, employee lawsuits, is now considered by the EEOC as having reached epidemic levels (Their word not mine).

So here we are in August of 2010, has anything changed? The answer is NO, except that all three issues are much worse. In this video I take on all 3 issues again, but with a particular focus on what I consider the most relevant and critical of the 3 -- Real Estate!

The reason I consider this the most critical is that I still see so many clients who are not taking the severe drop in both the value and the liquidity of their real estate holdings seriously enough.  By this, I mean that there is still a general feeling which I am seeing that we have hit the bottom and that the real estate is now about to bounce back up to former levels. I consider this not accurate for the following reasons:

Home Prices

Notice of defaults and non-performing loan statistics all indicate that we took a little bounce up from Q2 2009 to Q2 2010, but these have now all turned the corner to the down side once again.  While this news was bandied around with great flair by politicians, the reality is that actual foreclosures were and are still on the rise. This “bounce up” coincides with the effort to stimulate our way out of this crisis with the new home purchase credit and government programs. We must also consider that much of the Sub-Prime paper has been taken on by the Fed or Fed guaranteed, which makes the non-performing loan statistics highly skewed. The bottom line is that any improvement was bought at the expense of fundamental reform which is simply not occurring.

Fuzzy Accounting from Banks

Fuzzy accounting by the banks is rampant. Clearly verifying this claim is all but impossible. That’s the whole point of fuzzy accounting.  But here is what I know from talking to over 1,000 people in the past 2 years. Banks are not properly accounting for non-performing loans, and the FDIC is not requiring them to.  The FDIC, the agency responsible for insuring our deposits, happens to also be the very same agency responsible for enforcing proper accounting with the banks it insures.   Here’s the rub, if the FDIC required every bank to actually account for every non-performing loan (which is defined as a loan which is 3 months in arrears) then the FDIC  itself would immediately be considered bankrupt and there would be a massive insolvency of a majority of our banks.

The solution is to let the banks play games, which means the banks are NOT REPORTING all of their non-performing loans.  Here is how I know, I have literally dozens of clients whom have stopped paying mortgages on property for over 24 months and have not yet received a notice of default.   There is one, and only one, reason for this.  It is better for the banks to just ignore the problem for the moment (and for the FDIC to let them), as opposed to further damaging their balance sheet with  more non-performing loans which they know they can’t deal with, and which would make them immediately insolvent. What we are seeing is a MASS DENIAL of the underlying problem from the banks, the Fed, the FDIC and the government, not to mention all of us who are not taking the time to ask what is really going on. We need to WAKE UP!

Foreclosure Statistics Don’t Include Commercial Real Estate

None, and I mean NONE, of the current home foreclosure statistics include commercial properties. The mass denial and game playing has extending to pretending that commercial properties are somehow exempt from the mass contraction of the economy and the money supply which we are experiencing.  The reality is that if you look at the strip malls, office buildings and professional condos, vacancy is up dramatically. The next logical step is that defaults and foreclosures will soon follow. I expect a massive drop in commercial real estate values as tenant default on loans and landlords simply cannot re-rent the properties. Guess how I know.  My most recent flood of calls is from tenants wanting to protect themselves from recourse as they plan their premature exit from long term commercial leases. This is a big issue and no one is even taking about it yet.

Real Estate Prices set to Fall even more

This all says one thing for pressure on real estate prices. There is no way but down!  If there is one message I would like my clients to get it is that if you are underwater, or close to underwater on real estate PLEASE, PLEASE make sure you don’t just ignore it and assume that we are at the bottom. Based on what I see in my office I expect real estate home prices to fall an additional 20%-40% or possibly more depending on the market you are in. And I expect commercial property prices to readjust based on real rents, after this massive reset in the market, which could mean anywhere from 40% t0 70%, again depending on the market.

It is simply not time to pretend that all is well in OZ. Please view the above video. And if you have a question, concern, issue, whatever, please call me. I must say that the biggest issue I am finding is a hesitancy to act  in the fact of a potential crisis. None of us want to believe drastic action is necessary, but waiting until its too late can be devastating, so please get the information you need now.

Failing to do anything is acting, just make sure you are choosing your strategy and not accepting the default position just because it is the path of least resistance.

Douglass Lodmell

Top 3 Wealth Preservation Issues Update 2010 is a post from: Lodmell & Lodmell, the Nation's #1 Asset Protection Law Firm

Asset Protection applies to anyone who has assets they really want to keep.  However, for some professions the experts consider it a bit more important than others.  Of course we would include the usual suspects like doctors and medical professionals, as well as builders and absolutely anyone with employees.  But there is another area in which it is becoming more and more important – Landlords!

The World has Changed for Landlords

20 or 30 years ago, landlords weren’t particularly worried about lawsuits.  Sure they happened, but insurance was easy to get and was likely to cover almost anything that could happen.  Today the world is just a bit more complicated.  Here’s why:

1. Claims available to tenants have increased from just a few simple, obvious and insurable actions like breach of contract or a failure to follow State law in enclosing a pool, etc, to dozens of claims that would have been unimaginable to your parents.  These include harassment, slander, negligence, MOLD, emotional distress, discrimination, neglect and pain and suffering to name just a few.    Many of these are excluded from your insurance policy or simply uninsurable. (Try for yourself to search “Can I Sue my Landord” and see how many pages you get with “ideas”).
2. Awards and judgments against landlords have gone from limited and predictable to unclear and wildly erratic.  I was able to find dozens of pages doing a quick net search dedicated to horror stories from landlords for claims usually stemming from tenants who were behind on their rent or conducting illegal activity.  Imagine an uninsured award for $490,000 to a handicapped tenant for emotional distress.  Of course the tenant was not paying the rent, and its hard for me to imagine any scenario where a $550/mo apartment would reasonably result in a half a million dollar award no matter how rude or insensitive a landlord may be.
3. In a world with few claims and reasonable judgments insurance companies stood behind their insureds and paid claims regularly and in good faith.  In a world of out of control juries and unpredictable awards, insurance companies regularly look first to how to avoid being responsible for the claim and only after being held to the fire accept responsibility for the action.  Often this occurs only after the insured spends considerable time and money of her own to fight the insurance company.
4. Plaintiff’s attorneys have found a solid and reliable referral source in the tenant pool.  If you haven’t noticed, plaintiffs attorneys now dominate most of the outdoor billboard and afternoon television advertising in most major U.S. cities.  There is a reason for this and it doesn’t take a rocket s scientist to determine what it is.  Advertising for questionable claims within the afternoon television watching demographic has proven very profitable!  This includes quite a few tenants couch potatoing it in the afternoon wondering how to pay the rent.  Lawyers are only too happy accept their calls and counsel them on the possible claims they may have against a variety of potential defendants.  At the top of that list are their current or former employers and their current landlord.  Welcome to America!
5. Finally, landlords have at least one asset worth pursuing, and often more than one.  If you have real estate or investments of any kind, then you are a target today like no other time in the history of the world (except perhaps in the French revolution where being rich alone could ensure a date with the guillotine).  We are living in the American version of a redistribution of the wealth mentality which pervades our legal system.  It has now become culturally acceptable to gain money or wealth by being a successful plaintiff.

How to make a Asset Protection Plan

So what does this all mean if you are a landlord?  It’s simple.

1. Figure out where your exposure is on all sides. That means making sure you have the right amount and types of insurance with companies which are least likely to play the “It’s not my responsibility” game with you.

2. Get a clear and accurate analysis of your current asset picture and what you can do to protect it. There is nothing which reduces the chances of having an aggressive plaintiff’s attorney on your tail like moving his cheese.  No assets, no reason to sue.  It really has become that simple.

If you are reading this then you are likely doing research on the Internet.  This is a great thing, but be aware, it has its limits.  Asset protection is an area where a little knowledge can definitely be dangerous.  Once you have done the basic research I recommend that you pick up the phone and speak with an expert.

Asset protection has become a very popular field, which means there are a lot of people now counseling in the area.  Make sure you find someone with experience who can provide both the legal tools you need as well as the ongoing counsel required to make those tools really work.

In the end, asset protection has become an essential part of any wealth planning strategy and taking it seriously can make all the difference when it comes to keeping what you have worked to create.

Asset Protection for Landlords with Tenants is a post from: Lodmell & Lodmell, the Nation's #1 Asset Protection Law Firm

I am going to share a story with you that it very personal for me; however, the message is so critical that I believe it is valuable for me to do so.

Yesterday my son, Aslan, came home from visiting his aunt, uncle and cousins who live in Buenos Aires. As I was waiting for him to arrive through the international terminal at MIA with his grandmother, I felt a distinct sense of tension. At first I identified this as excitement. It seemed reasonable after almost a month apart. I literally could hardly wait to see him come through those doors. When he finally did appear with his beautiful curly hair (yes that is him above), I had a feeling which truly surprised me. It was an overwhelming feeling of relief. As I smothered him with hugs and kisses and tickles I could feel my whole being relax. It was like it was saying: “everything is going to be alright.”

It’s now been just over 24 hours since that moment, and I haven’t been able to stop thinking about why the feeling was relief? Why not love, joy, peace? Why was the feeling one of relief?  As a student of my own mind I know that feelings are always a direct consequence of thoughts and beliefs which must come first. And relief is a feeling triggered by fear.  So the question I had for myself was, what was I afraid of?

I found some obvious things, like being afraid that immigration would find a reason to deny entry to his grandmother who is from Senegal and traveling on a visa. Could be it, but this is not really rational with respect to my son and his grandmother.

Could it be that I just didn’t believe he was okay until I saw him for myself? Maybe. Could it be that I was afraid he wouldn’t remember me or be as in love with his daddy as he was when he left? Maybe. But more likely it was just a moment which highlighted intense emotions and thus triggered some of the underlying fear of life which I have yet to work through. And in that sense it was truly a gift.

No matter what the specific cause, I can tell you that the feeling of relief (release of the fear) was better than anything I could have imagined at that moment. The release of whatever little nagging fears I had, which had intensified and culminated in those few moments before he came through those doors literally brought me to tears.

So why am I sharing this story with you? Because I realized that the underlying motivation for so much of what we all do is fear. As I talk to dozens of people every week about their personal situations, consulting them on what types of asset protection are available to them, what I am really doing is holding their hand as they sit at their own personal gate waiting for something to come through it, just like I was with my son.

And knowing that, I also know that many of them don’t really need asset protection. What they need is a release from the power of their fear. For 95% of the people who call me, they are not prudently taking proactive steps to rationally hedge against a legal system which they have analyzed and determined needs action. This is a rationale. They are simply seeking someone to tell them “everything is going to be okay.”

And everyday I find myself telling them just that. Everything is going to be okay. Not because I have the secret magic weapon and can do the impossible. In fact, most of the people I talk to never even become clients. And I am not telling them that because I have analyzed their case and can say confidently that they have nothing to worry about.  Most of the time I can’t truly know if they have anything to worry about.

I am telling them that because I simply believe it. With all my heart I know that no matter what they end up going through, everything really will be okay. I tell them the story of a client who lost everything only to have him tell me 2 years later, “Doug thank God I went through that experience.” I remind them that it is not their planning, not their skill, not their shrewd choice of the best lawyer, none of that which will get them through what they are experiencing.  It is faith. Faith in a belief which only they can choose. The belief that “everything is and always has been okay, no matter what appearances may say.”

In the end that is what we all need to know. And if their is One Truth which I choose to believe over all others is it just that. “I am okay, now and always.”

And I want you to know that I know you are too.

Douglass Lodmell

Photo: Nami Dadlani

The Challenge of Fear is a post from: Lodmell & Lodmell, the Nation's #1 Asset Protection Law Firm

This is now officially QUESTION #1 coming in from visitors to my website!  Apparently the new word on the street is that if you are in trouble and want to protect your assets, just give them all away!  And better yet, give them away in this incredible vehicle called an Irrevocable Trust, which allows you to still have some control over what gets done with those assets and how.

And I must admit that this sounds like a great plan. I mean why not, especially if the objects of my generosity are my very own children or other close family members. On top of that, this type of protection can cost as little as FREE if you just transfer the assets outright. Even if you do want to have some control and use an Irrevocable Trust, since it is a simple domestic trust the cost can run anywhere from $2,500 – $7,500 (pretty reasonable when you are talking about asset protection).

This does sound pretty good, so is there a catch? The answer is YES, there is a big catch. Consider the following:

1. Giving all of your assets away out of the blue to your children, spouse or family is simply not a normal thing to do.
2. When a judge sees that happen (outright or in an irrevocable trust) he/she will make a presumption that the gift was made to delay, hinder or defraud a creditor.
3. This exposes the entire gift to a clawback by a judge.
4. If the gift was outright, then the judge may simply bring it back (i.e. take it away from whomever you gave it to).
5. If the gift was through an Irrevocable Trust, then the judge may invalidate the trust completely and remand the funds to the court, leaving you in a worse position then prior to the gift. (Worse because the job of finding and collecting all the assets has already been done for the court and the court doesn’t even need to take the assets away from you).

You can create an Irrevocable Trust, fund that trust, complete the gift, and leave all the assets right here in the good old USA. And if you follow the logic, and do not understand how the law really works, you may think that taking the time and effort to use an Irrevocable Trust somehow protects them in front of a judge. The irony is that often this just makes the job of the court and a creditor EASIER. You might as well just put a bow on that basket.

The Difference with a Full Asset Protection Plan

The most important difference is that in a true and well-structured asset protection plan, there is not a blatant gift made in the face of a creditor. In fact, this is a case where less is more. By taking legitimate steps to structure your estate and asset plan, you may move certain assets to legal tools such as a Limited Partnership or a Limited Liability Company without these transfers either being, or possibly even more important, appearing, to be a clear violation of the fraudulent conveyance laws.

While giving everything you have away is not a normal action at all, moving assets into legitimate business and estate planning tools IS a normal action for someone to do, even when faced with a crisis.  This is the key difference between the two strategies and makes all the difference when it comes to how a court will view your actions.

These tools in turn may be connected further to a special type of Irrevocable Trust called an Asset Protection Trust. While an APT is irrevocable, it is one in which you haven’t actually given your assets away. You remain the beneficiary of this trust and retain direct control until the assets are truly threatened. And if this trust is ever challenged you have the additional security of moving your assets away from the U.S. court, judge and jury (not available if you do a normal irrevocable trust).

It may help to think about it this way; A sophisticated Asset Protection Plan vs. a simple Irrevocable Trust is like the difference between driving down the highway at 85 mph in a new car with front, back and side airbags while wearing your seat belt and driving a motorcycle while wearing a helmet. While the helmet may give the illusion of security, which position would you really rather be in if you were heading for an accident?

And if you are even close to having a serious threat to your assets, then you are driving more like 130 mph with ice on the road.

Take Your Asset Protection Planning Seriously

The bottom line is that if you are serious about protecting your wealth, do your research online, and then when you think you understand the basics, or when you have reached the point where you are really confused by all of the conflicting information, pick up the phone and call a real live expert in this area (1-800-231-7112).  It need not be me or my firm, but I strongly encourage you to call someone who can walk you through this.  Remember, you are dealing with an incredibly important personal planning decision which affects your whole family, and going it alone is not a good option.

I recommend that you ask yourself what your goals truly are. If your answer is that you really want to protect your wealth, then I suggest you take a pass on any option which offers only the illusion of security and choose the one which will provide you with true protection.

Asset Protection Using an Irrevocable Trust? is a post from: Lodmell & Lodmell, the Nation's #1 Asset Protection Law Firm

Everything evolves, even legal concepts and tools. And the Limited Liability Limited Partnership (LLLP) is an example of one such evolution. So what is this new animal? Well if you already understand what a Limited Partnership (LP) and a Limited Liability Company (LLC) are, then understanding the LLLP is a piece of cake.

Like the fabled Jackelope, it is a hybrid of the two. In the LP, the General Partner has unlimited liability for the actions of the partnership, while the Limited Partners have limited liability. To get around that many planners use an LLC to serve as the GP, thus eliminating that risk and creating limited liability for all the partners.

With the new LLLP, the GP already has limited liability, eliminating the need for an additional LLC. Basically you can think of an LLLP as a traditional LP, with the benefits of an LLC as General Partner built in. That’s basically it, nothing more fancy than that.

Creation of an LLLP

In total 22 States currently allow, in some manner, for the creation of an LLLP. Several of these states don’t actually have an LLLP statute at all and creation requires the draftor to reference both the LP and the LLC statutes. In other states there is actually a Statute specifically addressing the creation of the LLLP. And in California, the LLLP is not recognized at all, but the state will recognize one created in another jurisdiction, as long as it is registered to do business in California.

LLLP and Asset Protection

So what does all this mean for Asset Protection? Is it time for everyone who has an LP to run to the new LLLP? Not really. If your plan was set up with an LP and you judiciously avoided exposing the Partnership (and hence the GP’s) to any risky assets or businesses, then converting to an LLLP is unnecessary since limiting the risk of the GP has already been accomplished. If you have an LP, and already use an LLC as the GP, then it is also unnecessary, since again the goal of limiting the liability of the GP has already been achieved.

If you are starting from scratch, and can utilize one of the states which allow for it, then using an LLLP may be the right choice for you. Nevertheless, there may still be reasons to use an LLC as the General Partner if there is any risk of infection from within. This is especially true if you want to manage more than one LP or desire additional flexibility about the transfer of management without a need to fiddle with the underlying LP. his more traditional structure also allows you to set up a completely different set of management rules and separate operating agreement without complex drafting inside the LLLP. This may be particularly important if your limited partners are different from the general partners.

The key with any planning is not to let the tail wag the dog. The right choice should be based on your particular “real world” situation and not on a theoretical “text book” analysis. I often get “which one is better” calls which remind me of grade school arguments about who would win Superman or Spiderman.

Using an LLLP may be appropriate for your situation or it may not, but figuring out when is a job best done with the help of qualified counsel. If you are researching asset protection the best possible advise I can give you is to pick up the phone and talk to someone who is experienced in this area of law. Research is great, but there is simply no substitute for people. That is why we are here isn’t it?

The Uses of The Limited Liability Limited Partnership (LLLP) is a post from: Lodmell & Lodmell, the Nation's #1 Asset Protection Law Firm

Can Asset Protection be used to protect assets from your spouse in a divorce? As you might imagine, I get this question all the time! The answer is – it depends.

Generally asset protection refers to situations where individuals or married couples are seeking to protect their assets and property from third parties, such as creditors and potential lawsuits. In terms of one spouse desiring to protect assets from the other spouse a different analysis must be done. The short answer is that if asset protection has been completed PRIOR to the marriage and properly maintained, then yes it can be effective to ensure that those assets are not included in any settlement to an ex-spouse.

On the other hand, if the planning is being considered after the fact, then we look to the rights of ownership and state laws regarding division of property and the State’s Domestic Relations Courts. With respect to separate assets, it is possible to create an asset protection plan after the marriage but prior to divorce, as long as the spouse is doing so only with clear sole and separate assets.

If the planning is being contemplated at virtually the same time as the divorce itself, then the general rule is that this is probably too late. In this case one needs to recognize that a Domestic Relations Judge has considerable power and can very effectively use its power, especially that of the Domestic Relations Order (DRO). One also needs to recognize the difference between the laws of the ten Community property States and the remaining forty non community property states. The various legal presumptions require the advice of competent legal counsel in your state.

Also, you should look at what is the likely division of assets under the state law. As a general rule assets owned or titled by one spouse prior to marriage may be considered as sole and separate and may retain that character during the marriage and not be subject to division in divorce, irrespective of being in a community property state or non community property state. To be effective the sole and separate property should never be co-mingled or mixed with property owned or titled in the name of both spouses. Doing this may defeat the sole and separate character and might be considered as a gift by one spouse to the other. This includes inheritances and gift from others to one spouse.

Persons with significant assets considering marriage often execute a prenuptial agreement which may further define property rights and expectations in the event of divorce. Courts generally respect such agreements, especially if both parties have independent counsel. Given that almost one half of all marriages end in divorce a prenuptial may be an appropriate measure in some situations. The property which is subject to division in a divorce is considered Marital Property. Marital property consists of all income and assets acquired by either spouse during the marriage, except gifts and inheritances to one spouse which are not co-mingled.

It is important to note that actions on the part of one spouse to hide assets or avoid an equitable division of property are generally not only ineffective but can incur the wrath of the Court and its considerable powers, among them the all powerful DRO. In short the best planning for protecting the rights of each party in a marriage is to begin with competent counsel, know your rights and implement effective choices.

The best advice I can give anyone facing a divorce after witnessing many, many cases is to not submit yourself to the interests of divorce lawyers and courts at all. Both spouses lose in a long and hard-fought case and in the end the only winners are the divorce attorneys who have been billing the whole time. If the marriage is truly over, find out what the law says about the division of property, divide the estate using that as a guideline and do it yourselves. Not only will you both save a significant amount of legal fees, but likely come through it emotionally much better as well.

Asset Protection in Divorce is a post from: Lodmell & Lodmell, the Nation's #1 Asset Protection Law Firm

Irrevocable vs. Revocable

So what do these terms really mean? Well let’s keep it very simple. Irrevocable mean that you cannot revoke it. You may think of it as irreversible, final or otherwise completed. Revocable, on the other hand, means that you can revoke it, or that it is reversible. Said differently, with a Revocable instrument you can change your mind and simply revoke it, whether it is a Will, a Trust, a Gift or even a Promise, whatever. And conversely, with an Irrevocable instrument, you cannot just change your mind, since you have irrevocably made the gift, will, trust, etc. The decision is final and irreversible and the gift stands.

When to use Irrevocable & Revocable

So why would we ever want to make an irrevocable decision if we can’t change our mind later? I mean, isn’t it better to keep your options open ? It depends on your goals. With a will or other document meant to dispose of your assets at your death, like a Revocable Living Trust, then yes, keeping your options open is very important. Most people change their mind or life situation many times before they die, so it makes complete sense to most often use a revocable instrument in that case.

On the other hand, if you want to reduce the size of your estate for tax purposes, then using a revocable gift or trust will not help you at all since the Tax Code will simply ignore the gift. In that case you must use an Irrevocable Trust, or gift to accomplish your task.

What about Asset Protection

So what about Asset Protection? Now that you understand the basic difference between revocable and irrevocable, which type of planning would you expect to stand up in an attack on your wealth? If you guessed irrevocable, you got it! Why? Well for the very same reason that a gift which is revocable is still considered by the IRS as yours, since you can take it back any time you want. An asset protection plan that you can revoke at your discretion would run into the same problem as a gift you could take back. A court could simply tell you to revoke your planning and poof – There goes your asset protection.

So in a nutshell, if you need flexibility and want to be able to change your mind, then you probably want to use a revocable plan. If you want to truly protect your assets, then for sure the only way to go is with an irrevocable plan. Which leaves us with one big question: “Is there a way to still have control of your assets, even if they are in an irrevocable asset protection plan?” The answer is YES, if you know how.

Irrevocable or Revocable, What’s the Difference? is a post from: Lodmell & Lodmell, the Nation's #1 Asset Protection Law Firm

So what does Venice have to do with the Power of Giving?  Well for me it is where I decided to pass on something I think is really cool, and share this beautiful photo. For the kids that are going to receive it means that they may just get to do something as cool for them as Venice is for me.

After meeting Tim Ferriss last week I began reading his blog. And he is doing something pretty cool for his 33rd birthday (See his unusual $100,000 birthday request).  He is asking for people to donate $33 to a charity focused on helping students who have never been on a field trip before.  He has also offered to match the total amount of the giving up to $100,000 from his own pocket.   I am interested in this for 2 reasons:

1. I love to see kids expand who they are. And travel, whether to Venice or to the science museum or the aquarium in your own city, is wildly mind expanding. Especially when it is the first time, and
2. I am interested in experimenting with the power of linking.

I know we are all familiar with something going ‘viral’.  The photo taken by a tourist, the YouTube video that hits a social mood, or even a tweet heard around the world.  But the statistics on anything truly becoming viral are about as good as winning the lottery.  My goal is NOT to make this viral.  Rather, my goal is to make it intentional.  I would like to see if it is possible to create a consistent shared goal which is both realistic and predictable.  So here is my contribution to Tim’s challenge.

I invite all of you to contribute to Tim’s goal as well, and for each dollar that my clients and friends contribute I will also match that all the way up to Tim’s $100,000 mark!  What this means is that Tim will then match your dollar and my dollar!  The math on that means that for every dollar you give, $4 dollars actually get received.  That is powerful.

To get my team started I have already given $3,300.  I also wanted to see how easy it was, and it was VERY EASY.  To keep track of our match, when you give please forward me the confirm email you receive so I can tally it up and match all the gifts.  Also please do it now, as Tim’s challenge is only through Sunday night.  And there really is no moment but now.

Finally, I would like to say a word about giving.  All transactions are aimed at nothing but a feeling.  The car, the watch, even the house we buy all trigger a specific feeling, and all of these are important.   I recommend that you experience every feeling related to money possible–without guilt.  However, what I have noticed is that the feeling associated with giving has a lingering effect which is totally unique.  The feeling of the new computer, phone, car and even house fades within hours, days or weeks at best.  The feeling associated with giving seems to linger on and on for months and even years.  I think its because the watch can’t give back to you, but a person can.  The energy becomes reciprocal, even if you never meet the receiver.  And the bigger the gift, the more power that lingering seems to have.

If it’s been awhile since you have felt that, or haven’t noticed it before, then I encourage you to Give Now.  And if you really want to test out what I am saying, make a gift that seems just a little on the big side of normal for you.  Then just watch how you feel.  I’m smiling right now

Doug

Venice and the Power of Giving is a post from: Lodmell & Lodmell, the Nation's #1 Asset Protection Law Firm