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Protect Y our Assets

1. Formulate a strategy . Realize that no matter how carefully and ethically

you conduct yourself and your business, it is highly likely that you may
be sued.

2. Recruit and organize professionals who can help you accomplish this goal .
Most likely, you’ll need an attorney and an accountant who are both
skilled at asset protection structures and methods.

3. Prioritize your objectives . Evaluate your overall financial situation, but

in a way that doesn’t negatively affect your other fi nancial planning
objectives. Consider how a transfer of assets from one entity to another
may affect your tax and/or estate planning. If you put your personal
residence into a limited partnership, you’ll gain asset protection—but
lose the tax exemption.
4. Measure your wealth . What assets do you have at risk, and how do you

expect your wealth to change in the future?
5. Be proactive in your planning . You can’t put an asset protection system in

place after you’ve been sued. Unfortunately, people often think about
how to protect their assets when it’s too late.

One last word: A secure asset protection system in place is a lifelong
process. Regular review of your assets and their vulnerabilities can ensure
that you have the protection you need.
The world of asset protection is where the law and capitalism intersect,
or, if you’re not prepared—collide. Using all of the asset protection strategies
we discussed in this chapter make good business, and legal, sense, so take
advantage of them. These laws were put into place not to avoid paying
deserving creditors and plaintiffs, but with one goal in mind: to encourage
economic growth. Capitalism can be pretty scary at times, but a good asset
security system can protect you properly; without such protection, very few
people would ever try to invent something new. Be bold in your business
endeavors, but also be smart by using the right tools to protect yourself.

For More Information

Visit legal publisher Nolo Press ( www.nolo.com ), the web site of the Internet
Legal Research Group ( www.ilrg.com ) or my web site, www.secretmillion-
aire.com . For more information about asset protection, watch for J.J.’s book,
Trump University Asset Protection 101 , to be published by John Wiley & Sons
in October, 2007.

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