Do I need an attorney to set up my asset protection program?

The short answer is, it never hurts and often it’s absolutely essential.

The problem is, very few attorneys (or anyone else) really understands asset protection. That’s because no law school teaches asset protection. Asset protection is a very complex, specialized ‘niche’ profession that requires an understanding of many legal fields, including fraudulent transfer law, business organization law, estate planning, real estate law, securities laws, retirement planning, bankruptcy law, UCC law, tax law (both domestic and international), conflicts of law issues, as well as an understanding of the litigation/judicial process.

Furthermore, asset protection consultants need to understand certain laws in all 50 states, not just the state(s) where a particular attorney is licensed to practice.  As a result, there just aren’t many people with enough skill, expertise, and brainpower to set up a real solid asset protection program. (There are lots of people who can and do set up ineffective or even fraudulent asset protection programs[1], however.)

Because competent asset protection planners are difficult to come by, the best ones tend to have clients nationwide. However, it’s often best for an asset protection planner to work with an attorney who is licensed in the same state as a particular client, for the following reasons:

• If the client retains the attorney, who in turn retains the planner, the planner will be able to work ‘behind the scenes’ because of attorney/client privilege. His work will also be regarded as privileged work product. Because of this, a creditor will probably never know an asset protection planner put together a certain structure, which helps avoid fraudulent transfer ruling.
• The planner working under an attorney ensures that there will be no Unauthorized Practice of Law (UPL) concerns.
• The local attorney is often more familiar with local laws than the planner, which will only make a program that much more effective.
• The local attorney can provide a 2^nd opinion and further insights that will strengthen the program.
• Since you are using a local attorney, you are relying on him for sound legal advice, which may insulate you against certain claims of wrongdoing.

PF Shield has a wide network of attorneys it works with across the country. Most attorneys are willing to supervise a program for as little as $750. If you don’t know which attorney to retain, call us for a referral at 800-798-2008.