Asset Protection Trusts: Attorney Gary Fales Separates Fact from Fiction

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(Free-Press-Release.com) February 3, 2010 -- VISIT US AT: www.GaryFales.com

Q: Gary, what is asset protection? For someone who doesn't know anything about it, what is the most basic explanation of what it is?

A: Asset protection means planning for lawsuits and planning to shield assets from lawsuits. In my practice, when I refer to asset protection, I refer to it in a broader sense. Asset protection is protection from anything that
can take destroy what a person has saved. There are five Asset Invaders: 1) death; 2) disability; 3) lawsuits; 4) the nursing home; and 5) divorce.

Taxes are also an invader that affect each of the five Asset Invaders.

Q: With all that's going on in the economy these days, why should more people be thinking about asset protection?

A: I like to say that you can be sued by anyone, for any reason, at any time. With the downturn in the economy, more and more folks are losing their jobs, their homes are losing value, their investments are shrinking and people are getting more desperate. If you get sued because you can't afford your mortgage payments, most states will let the lender sue you for the deficiency. In that case, all the assets you own can become subject to

seizure by your creditors...unless you shelter them with asset protection strategies.

Q: What happens to asset protection planning if the American dollar is devalued significantly over the next few years?

A: Many of the strategies that are used encourage folks to diversify their investments and tactics. Generally speaking, the bailout is going to be funded with an increase in taxes and inflation. Inflation is simply a tax
on those who hold wealth. With the increase in inflation, there are more dollars chasing fewer goods. I recommend three ideas for my clients to consider. First, invest in some gold. Gold is a hedge against inflation.

Gold also has inherent asset protection benefits. Next, for my clients who have bank accounts offshore, it's reasonable to choose some other currency to hedge against the falling dollar. Finally, invest in the normal
anti-inflation investments...but do it with a twist. Build asset protection structures around the investments so they cannot be invaded. And make sure that you invest with mutual insurance companies for annuities and life
insurance. The mutual insurance companies must answer to the policy holders not Wall Street, so they are more conservative and many have been making dividend payments for 50, 70 or more years in a row.

Q: Is asset protection legal? There are many people on the internet claiming to be experts in asset protection and many sites claim that asset protection is a scam and to beware.

A: Asset protection is legal, but there is a dark side to asset protection. I always look to the bias of the promoter. Are they selling life insurance? Are they licensed attorneys? Are they just people claiming to be experts? Are they regulated by the government?

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