Jay Adkisson - Asset protection: concepts and strategies for protecting your wealth

Copyright 2004 by McGraw-Hill Education, LLC. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher.

ISBN: 978-0-07-150547-5
MHID: 0-07-150547-4

The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-143216-0, MHID: 0-07-143216-7.

All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps.

McGraw-Hill Education eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. To contact a representative please e-mail us at bulksales@mcgraw-hill.com.

McGraw-Hill Education, the McGraw-Hill Education logo, TAB, and related trade dress are trademarks or registered trademarks of McGraw-Hill Education, LLC and/or its affiliates in the United States and other countries and may not be used without written permission. All other trademarks are the property of their respective owners. McGraw-Hill Education is not associated with any product or vendor mentioned in this book.

Information contained in this work has been obtained by McGraw-Hill Education, LLC from sources believed to be reliable. However, neither McGraw-Hill Education nor its authors guarantee the accuracy or completeness of any information published herein, and neither McGraw-Hill Education nor its authors shall be responsible for any errors, omissions, or damages arising out of use of this information. This work is published with the understanding that McGraw-Hill Education and its authors are supplying information but are not attempting to render engineering or other professional services. If such services are required, the assistance of an appropriate professional should be sought.

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

From a Declaration of Principles Jointly Adopted by a Committee of the American Bar Association and a Committed of Publishers and Associations.

TERMS OF USE

This is a copyrighted work and McGraw-Hill Education, LLC and its licensors reserve all rights in and to the work. Use of this work is subject to these terms. Except as permitted under the Copyright Act of 1976 and the right to store and retrieve one copy of the work, you may not decompile, disassemble, reverse engineer, reproduce, modify, create derivative works based upon, transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without McGraw-Hill Educations prior consent. You may use the work for your own noncommercial and personal use; any other use of the work is strictly prohibited. Your right to use the work may be terminated if you fail to comply with these terms.

THE WORK IS PROVIDED AS IS. McGRAW-HILL EDUCATION AND ITS LICENSORS MAKE NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMATION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. McGraw-Hill Education and its licensors do not warrant or guarantee that the functions contained in the work will meet your requirements or that its operation will be uninterrupted or error free. Neither McGraw-Hill Education nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in the work or for any damages resulting therefrom. McGraw-Hill Education has no responsibility for the content of any information accessed through the work. Under no circumstances shall McGraw-Hill Education and/or its licensors be liable for any indirect, incidental, special, punitive, consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages. This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise.

Chapter 1
Introduction

Chapter 2
What Is Asset Protection?

Chapter 3
Issues of Morality in Asset Protection

Chapter 4
Goals of Asset Protection

Chapter 5
Asset Protection Litigation

Chapter 6
Fraudulent Transfer and Bankruptcy Considerations

Chapter 7
Offshore Planning

Chapter 8
Methodology of Asset Protection

Chapter 9
Statutory Exemption Planning

Chapter 10
Collateralization

Chapter 11
Trusts for Asset Protection

Chapter 12
Spendthrift and Discretionary Trusts

Chapter 13
The Domestic Asset Protection Trust (DAPT)

Chapter 14
The Foreign Asset Protection Trust (FAPT)

Chapter 15
Foreign Trust Control

Chapter 16
Introduction to Share Structures

Chapter 17
Domestic Corporations

Chapter 18
Foreign Corporations and IBCs

Chapter 19
Charging Order Protected Entities

Chapter 20
Domestic COPEs and Series LLCs

Chapter 21
Foreign COPEs

Chapter 22
Management Companies, Leasing Companies, and ESOPs

Chapter 23
Advanced Life Insurance and Annuity Strategies

Chapter 24
Captive Insurance Companies

Chapter 25
Other Advanced Methodologies

Chapter 26
Specific Situations

As a defined professional practice area, asset protection planning is still quite new. As such, there are widely varying theories among practitioners about how to address even the most common situations. With little or no settled case law that deals with many planning strategies, one theory may seem as good as another until the theory is tested in the crucible of the courtroom. With the current unsettled state of affairs in the field of asset protection planning, anyone who advocates a particular theory might seem a genius or a fool, depending on how others in the field view that theory.

Although there may be no case law on a particular subject, an attorney who has been in a courtroom and has stood before a judge in a contentious case will have a sense for how a judge might view a particular strategy. One of the principal purposes of this book is to offer our impressions of how courts are likely to treat particular asset protection strategies, regardless of the technical legal theory behind the strategies.