There seem to be a lot of law firms with business or estate planning expertise in my area, but only a few that market themselves as "asset protection" specialists. The latter seem to be more expensive with hourly that starts in the high three hundreds per hour or more. Is this just a gimmick, and could any normal business or estate planning attorney assist with structuring a corporation or multiple entities for asset protection strategy?
Assuming you have less than $10M to protect, a good corporate or estate planning attorney will do. Make sure you have insurance, and umbrella policy, and that you don't think that you can form your own corporate entity: every single "pro per" formed entity I review is defective.
Give special attention to any answers posted by Florida licensed attorneys (which I am not.)
This is a good question and you are correct that there is a lot of confusion in the marketplace regards to these services.
The best way to explain it is that there are business lawyers, such as my firm, that handle general business liability protection. Then there is what we call "asset protection" planning. This is a much more involved process that considers not just your business objectives and the best ways of avoiding personal liability, but will go way beyond that and consider your entire financial scenario and will include a very comprehensive program. DE Trusts and Asset Protection attorneys tend to be very respected in this genre of legal practice because of the very favorable DE statutes.
You are also correct that the latter service is extremely expensive. But of course think about what they are doing. You don't need them unless you have those many assets (aka wealth) to protect right? And also think about the responsibility and knowhow involved. Assuming you have a lot to lose, it is the best money you will ever spend.
I suggest that you consult with a lawyer in private and discuss your objectives in more detail. You can start by calling around to several for a free phone consultation, get some insights then pick the best fit to work with.
Best regards,
Frank
Natoli-Lapin, LLC
As my colleagues already responded: all depends on the net worth you seek to protect.
I do disagree with the opinion that you need to be multimillionaire to get asset protection planning. If Bill Gates is sued for let us say for 500k, he probably won’t sleep less. If your personal net worth is 600k, “sleepless nights” would be an understatement for describing the situation you find yourself in. Investinging in a sound asset protection plan is buying peace of mind.
I usually put it this way: if you have a cough or a small headache, you go and see your local general practitioner. If you have a brain or a heart issue, you want to see a specialist, even this specialist practices in another state. And this does not mean you think your local general practitioner is not a good a professional. It is common sense.
A sound and legitimate asset protection plan is not aimed to hide assets from legitimate and existing creditors or from the IRS. It makes it more difficult for frivolous or bogus creditors to go after your assets. A thoroughly crafted asset protection plan should also be tax free and not compromise ownership or control.
Which and how much legal tools your parents need depends basically and the kind of assets, their exposure (teenage drivers, professional risks, risky assets as investment real estate, etc.) and the total net worth they seek to protect.
Your major concern is about the legal fees. Not all attorneys use the same fee structure: in my firm, for example, legal fees exclusively depend on which and how much legal tools you need. Annual maintenance fees are flat.
Asset Protection is often confounded with estate planning (, by the way, does not make the difference). When interviewing an attorney with specific expertise in the area of asset protection planning, you may want to ask the following questions:
1. Which % of your practice area is dedicated to asset protection planning?
2. How much asset protection plans did you set up during the last year?
3. What are the tax consequences of the plan you recommend?
4. Does this plan compromise ownership or control?
5. How is your fee structure for implementation and maintenance of the planning?
6. What is the ongoing support you provide and how do you charge for this support?
With all due respect I disagree with my colleagues on this issue. There are many attorneys out there who will do what they call "estate planning". As far as my philosophy goes, any individual concerned about protecting their assets and doing family planning to insure their objectives are met is doing asset protection planning. Filling in blanks on a will or trust template is not the same as analyzing a particular situation and saying how can we best protect your assets from creditors, predators and other unscrupulous individuals if you are no longer in control of your own assets. You get what you pay for. You pick what kind of planner makes the most sense in your situation. Joseph Pippen is in Florida and I would do an avvo search and have an initial appointment with him to see what he can do for you and make appropriate suggestions based on your objectives. You do not have to be a multi millionaire to do proper planning and I do not believe it is any kind of a gimmick.
