Tips to Avoid Asset Protection Schemes and Scams by The Marv

15 Tips to Avoid Asset Protection Schemes and Scams

The Marvont Group provided several tips below on how to protect yourself from asset protection schemes and scams and how you could lose all your hard earned money if you fall for one.

1.	It is apparent that a lot of unqualified individuals are marketing themselves as asset protection experts nowadays. Remember that it is important to verify the references and the training of the supposed expert at all times. An individual claiming expertise in asset protection must have substantial tax and international law training.

2.	Don’t believe anyone who guarantees you that an asset protection plan will save you income taxes. Asset protection planning will not save you a cent on income tax, although it can help you with estate taxes.

3.	Don’t trust a foreign trustee, or anyone else, with your hard-earned money. Consider it a red flag when someone suggests that you have to “trust” someone else.

4.	Don’t be convinced by a practitioner who states that a related entity encumber your assets with bogus loans. This scam is well-known these days and it doesn’t work. It will only cost you a lot of money and trouble.

5.	Don’t be so sure of a practitioner who claims that the Internal Revenue Service can’t find or tax the offshore account they are recommending, because they are definitely wrong. The IRS currently has over 400 individuals working in FinCen and their purpose is to locate such accounts. Doing this is a crime and The Marvont Group have witnessed the United States spend millions of taxpayer’s dollars to prosecute such crimes. Keep in mind that the U.S. citizens/residents are taxed on their worldwide income “from whatever source derived.”

6.	Stay away from Nevada corporations, unless you live in and work or are involved with Nevada then they’re totally fine. For some reason, many of the marginal schemes use Nevada corporations and addresses. Remember that this doesn’t work and it should be considered a red flag.

7.	Never trust an entity that will ask you to lie. Bear in mind that an asset protection should work because it is done properly. You shouldn’t be placed into a position where your protection is based on deception. If all the details of your asset protection plan come to light, you shouldn’t be compromised.

8.	If a practitioner suggests that you "give it away" to a spouse or child, it is usually too late; and, this normally doesn't work. It is always a bad idea unless you're going to make the gift anyway.

9.	You should get a second opinion after you meet a practitioner who suggests a family limited partnership and touts the charging order protection as adequate because it often isn’t.

10.	The seminar and mass marketing promoters are mostly scammers. The best asset protection is usually expensive and simply requires expertise and time. You must avoid bargains because you usually get what you pay for.

11.	Alaskan trusts and Delaware trusts are being marketed as a significant asset protection tool. Well, they aren’t. Don’t forget the full faith and credit clause in the constitution. Sister state judgments are enforceable in both Alaska and Delaware. These trusts only benefit the lawyers and trust companies in these particular countries.

12.	Pure trusts and constitutional trusts are pure fraud. These trusts are recognized in the trade as “con trusts” because they’re advanced by a con man. They don’t work and they’ll only get you into trouble. Numerous circuit courts have considered them fraudulent as a matter of law.

13.	If done properly, offshore accounts are definitely great and safe, but they will not save you any taxes. Be wary on the often touted “offshore credit card” which will cost you a $200 processing charge. Most of these marketers are just scamming you. Be prepared to wait for a very long time for the delivery when you purchase the card.

14.	Be careful on the fee-based financial planners who charge a fee and take sales commissions. The Marvont Group has seen many individuals lose a lot of their principal for the sake of asset protection. You never need to give up control of your assets.

15.	Please note that offshore personal banks won’t help. They might cost a quarter million or more, but it won’t do much more than cause you an enormous accounting and legal nightmare.