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Personal Finance How Not To Lose It All
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Personal Finance How Not To Lose It All


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  • Seagulls in “Finding Nemo”-we think we are all unique in our own industry, but change the name (doctor, layer, CPA, and we have the same exact problems
  • Transcript

    • 1. Worst Case Scenario in Asset Protection – You Lose Everything! North American Veterinary Conference January 15, 2007 Is this who’s guarding your practice door? A tasty treat could easily defeat!
    • 2. Speaker Information
      • Mark J. M c Gaunn, CPA/PFS, CFP ® President
      • MJM Financial Advisors, LLC 114 Turnpike Road, Suite 107 Westborough, MA 01581-2861 phone: (978) 405-3133 e-fax: (978) 776-2609 e-mail: [email_address]
      • web:
    • 3. Asset Protection
        • What it is
        • What it is not
        • What to do
        • What not to do
      Planning that preserves wealth over time against numerous, unforeseen circumstances. We’ll discuss:
    • 4. Asset Protection
      • Well-designed plans arrange one's affairs so as to minimize the risk that one's wealth is subject to external creditor attack and frivolous lawsuits.
      • Effective plans contain multiple layers of protection.
      • Asset protection is fundamental building block of risk management.
    • 5. Is common sense enough?
      • Effective asset protection starts with common sense .
      • But can practice owners protect assets from:
      • Foreclosure action by secured lender(s),
      • Breach of contract or intentional act by practice employee
      • Owner’s personal actions/debts outside veterinary practice (personal guarantee on secured debt),
      • Personal creditor attaching owner’s entity(s) stock
      • Practice employee/vendor harassment
      • Pet owner/visitor personal injury.
    • 6. What to get?
      • Create a plan designed to offer genuine protection for veterinary practice owners:
      • not so simple you’re unprotected, but
      • not so complex it causes needless difficulty.
    • 7. General Know-How
      • Planner needs a broad knowledge of asset protection options-from simplistic to most complex.
      • Avoid wealth protection seminars and “boilerplate” solutions.
      • Run if someone promises way to avoid taxes.
      • Each solution tailored to each practice owner.
      • So follow these 4 rules…
    • 8. Rule 1 of 4
      • Do not own significant assets in your own name
      • Not doing so equates to leaving door to practice unlocked. All assets ( real estate! ) are targets.
      • Re-titling common practice of wealthy and large corporations (high profile targets). Best and least expensive strategy.
      • Walt created Disney World in 1970’s by forming >100 land trusts (each with different undisclosed beneficiary names and trustees) to own Orlando land.
      • Estimated lawsuit savings $100 million.
    • 9. Rule 2 of 4
      • Use multiple entities to own your assets
      • Use a separate entity to insulate each liability-generating asset.
      • May include revocable and irrevocable trusts, both C ( really! ) and S corporations, Limited Liability Companies (LLC) and Partnerships (LLP)
      • May include foreign and domestic asset protection trusts (APT).
    • 10. Rule 3 of 4
      • Maintain assets and entities that hold your assets in different or in multiple jurisdictions
      • Multiple jurisdictions can mean simply having entities domiciled in different states, not countries.
      • John D. Rockefeller, Sr. successful vs. PA even while owning properties in NY, FL and CT (he retained them without loss)
    • 11. Rule 4 of 4-Remember!!!
      • Asset protection laws change constantly.
      • U.S. tax law has changed every other year since 1980.
      • New asset protection strategies come into favor (new islands and states seeing $$$)
      • Strategies fall out of favor based on case law (bankruptcies and appeals by IRS).
    • 12. Veterinary Risk Management
      • Practice high-quality veterinary medicine.
      • Document all care you do.
      • Document what you don’t do.
      • Apologize right away.
    • 13. General Basics
      • Beware of "experts” and “guarantees”.
      • Maintain modest lifestyle with a low profile.
      • Avoid general partnerships.
      • Maintain more than adequate insurance coverage (Value=typically ins. co. must provide a defense.
      • Don’t do what “Stan the Man” did.
    • 14. Don’t meet FBI or IRS on their turf!
      • Asset protection is not illegal and is honored if done for a legitimate purpose.
      • But, an entity or entities may not be created without business purpose and personal assets transferred to them with no relationship to any business purpose, simply as a means of shielding them from creditors (see Stranghi vs. Commissioner, expert Atty. Robert J. Mintz).
      Photo source:
    • 15. Thank You! 谢谢 Merci Danke Schon Grazie ありがとう 당신을 감사하십시오 Obrigado Gracias