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To learn why "global" Asset Protection Planning is not just about using LLC/FLPs and offshore planning, please click here.
 
Advisors who have taken a course from The WPI requested that a "sales" platform be created for certified advisors.  Therefore, The WPI with the help of Matt Radin, JD, created the C.A.L.M. platform.  This platform will help certified advisors work up a comprehensive asset protection, financial and estate plan for all clients in a systematic manner.  To read about the various levels of C.A.L.M., click here.
 
 
Asset Protection
 

 Asset Protection

What is asset protection? 

            Most asset protection “gurus” believe asset protection revolves around helping clients who have money protect that money from your “typical” creditor from a negligence suit.  A few examples of a typical creditor are: a patient who sues a physician for malpractice, someone who slips and falls on property and sues the owner, or someone injured from someone negligently driving a car.

            While it is true that clients with money do need to protect themselves from the “typical” creditor, there are many other creditors out there that clients need to be protected from.

            Asset Protection can be done domestically or “offshore.” Domestic asset protection revovles around the use of LLCs and FLPs. 

"Global" Asset Protection

 

            The WPI educates on global asset protection which is vastly different than the asset protection gurus pitching LLC/FLPs and offshore trusts.  Global asset protection revolves around the concept that anyone or anything who can take your client’s money is a creditor. 

            Who are other common creditors advisors don’t think of as a “typical” creditor?   

            -The IRS and state government (if you have a state income tax).  The IRS is everyone's number one guaranteed creditor every year?  Every year high-income clients pay taxes to this creditor.  Would your clients like to pay $15,000, $50,000, 100,000+ less in income taxes this year?  Absolutely.  That’s why becoming a CWPP™ or CAPP™ is so powerful (when you can help clients with "global" asset protection).

            -The stock market.  You know this is the case if your clients had money invested from 2000-2002 when the stock market lost nearly 40% of its value.  Think about it, did you lose money from 2000-2002?  Absolutely.  Would your clients like to invest in the market with good potential for growth and still principally protect all or the majority of their money?  As a CWPP™ or CAPP™ advisor you'll be able to do just that.   

            -Capital gains.  Every year many clients sell highly appreciated real estate and stocks.  Those clients complain because they have to pay capital gains taxes.  CWPP™ advisors can help clients sell highly appreciated assets and avoid the current capital gains thereby allowing the government’s money to be used for years to help clients build a larger retirement nest egg.  This can be done through a CGA/CRT. Also, many advisors are not aware of the advantages of using an intentionally defective grantor trust (IDGT) to help with captial gains tax planning and creating a larger income tax favorable stream of retirement income.  Again, what sets a CWPP™ and CAPP™ advisor apart from other advisors is that they know more solutions to help clients which allows them to give clients advice that is in their best interest.

            - Estate taxes.  Clients with wealth all worry about the estate taxes that will be paid upon their death.  Few advisors truly know “advanced” estate planning and ways to mitigate estate taxes.   CWPP™ advisors know many tools to reduce the size of a client’s taxable estate so as to minimize or eliminate estate taxes (such as "Freeze Partnership," SCINs, GRATs, IDGTs, CGA/CRTs, etc.).  

            -Long-term care expenses.  The number one guaranteed creditor of clients over the age of 65 comes from the health care industry in the form of long term care expenses (drug costs, home health care, nursing home, surgeries, etc.).    It is vitally important for clients to protect themselves from this guaranteed expense.  The best time to protect your clients from this guaranteed cost is to deal with it when they are still working (if possible).   The earlier your clients deal with this expense, the lower out of pocket costs they will have.  CWPP™ and CAPP™ advisors specialize in helping clients pay for these expenses in a tax favorable manner.

            If you want to provide the very best advice for your clients and help them protect their assets from "ALL" potential creditors, you should consider becoming a CWPP™ and CAPP™.    To sign up for a course, please click here.

 

 
 
 

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