Top 5 Myths About Asset Protection
The top five myths about asset protection debunked.
With the popularity of asset protection growing, so are the myths associated with asset protection. It’s important that you’re able to separate the facts from the fiction. I’m Max Anderson and I’m going to debunk some of the asset protection myths that are running rampant on the web.
Asset Protection Myth #1 -- Everyone’s A Pro
Asset protection is becoming more and more popular and as such, there are suddenly more pros on the Web than can be counted. Are these gurus who want to charge you money for their asset protection advice really pros?
The fact of the matter is, unless the person promising to give you great asset protection secrets is a CPA or an attorney, they’re probably not a pro. While asset protection is becoming increasingly popular, that doesn’t mean it’s getting any simpler. Asset protection is a complicated and involved process and only a professional can really help you protect your assets effectively.
Asset Protection Myth #2 -- Foreign Trusts Are the Answer to Asset Protection
This myth couldn’t be further from the truth. You should never, ever trust a foreign trust with your cash. What is going to stop them from taking your money and running? Foreign trusts for asset protection is becoming an increasingly popular scam, so if someone tells you to put your money in a foreign trust, run the other direction.
Asset Protection Myth #3 -- Asset Protection Will Save You Income Tax
This is another myth that makes me laugh. No where in tax law is there a loophole that allows asset protection to save you income tax dollars. While there are laws that allow asset protection to save you estate taxes, income taxes are not a part of the deal.
Asset Protection Myth #4 -- Give It To Your Spouse
Giving an asset to your spouse usually won’t do any good, especially if you live in a marital property state. It’s not uncommon for creditors to go after a spouse’s property so giving the property to your spouse isn’t really going to protect it.
Asset Protection Myth #5 -- Put It Offshore
If you’re putting your funds in an offshore account to protect your assets, you might be wasting your time. Just because assets are in an offshore account doesn’t mean that creditors won’t be able to access them.