A Californian’s Right to a Protected Retirement

Private Retirement – A Californians Right to Exempt Assets

California was just named the #1 Judicial Hellhole in the nation by NIFB.  Unfortunately, while asset protection has become one of the hottest topics and business advocates are hungry for solutions, the term “asset protection” has become taboo, and there is a major vacancy of advisors, expertise and education in the area of “exemption planning”.  We are often perplexed with everyone scampering for solutions, and then they step over their basic exemption right for a private retirement.

What is a Private Retirement Trust?

A Private Retirement Trust, or PRT, is an enforcement of your right to convert non-exempt assets to “exempt” assets for your retirement. It’s a special Trust, that protects a Plan funds, that protects your Plan distribution and benefits, that protects your rights for a secure retirement – so that your wealth can be kept intact to help you secure a safer and more secure retirement.

When we teach clients, advisors and CPAs about these rights, the response is almost always the same: “Why didn’t I know about this?”

The answer is unfortunately because someone was promoting “Asset Protection” which is an extremely complex area, fraught with landmines and with limited advisors who know what they’re doing. Furthermore, such planning is usually utilized when under duress (when under attack) and defaults to “creditor evasion” and construed under fraudulent transfer (conveyance) rules that may incur penalties or even jail time for a violator.

Mass Education vs. Mass Marketing of the Private Retirement Trust

Recently, there have been articles written by self-proclaimed consumer advocates, mostly attorneys promoting their own services and that you can’t plan properly without them, warning against the mass-marketing of exemption rights, specifically the California private retirement plan or Private Retirement Trust.

But the pundits are completely missing the point, the intent is not to mass market, which are concerns usually reserved for tax-savings strategies, but to mass educate. Almost every client or advisor comes through our door knows nothing about asset protection, private retirement, or exemption planning, yet ALL Californians have the right to protect assets, as provided to all its residents under state law. The pundits are correct in one main item, that any plan needs to be properly set up with experts who know this specific field. You shouldn’t have any advisor, including a CPA, who is not familiar with the subject of Asset Protection, exemption rights, or private retirement plans, set up your planning or your defense will be weakened and perhaps forfeited. But that doesn’t mean you can learn and be educated on your rights under state law.

Exemption Rights vs. Asset Protection planning

So how does a Private Retirement Trust exemption fit within other Asset Protection planning solutions? Here are the basics:

  1. Buy Liability Insurance –
    1. Will the insurance pay? Will it be enough?
    2. Does it keep you from going to court? Will you have sleepless nights? Yes.
  2. Gift away assets
    1. Some advisors use Estate Planning strategies to solve Asset Protection planning needs which conflict. Why? Because if you irrevocably gift away assets, they are not yours anymore, they are outside your Estate.
    2. So here’s the hard questions: Are you aware you are giving up full control? Are you ok with that? If not, the strategy doesn’t match the need, which usually means the “plan” won’t succeed.
  3. Transfer assets:
    1. Fraudulent conveyance – clawback.
    2. Unintended Tax triggers
  4. Hide Assets – hide the nut. Move offshore.
  5. Exempt Assets
    1. Exemptions
    2. Retirement
Protecting Your Rights

So back to the commentators suggesting PRTs shouldn’t be broadcast. We feel it should. And actually by disparaging the practice of broadcasting the PRT right, they’ve helped us get the word out. We’ve had more calls and inquiries from interested Californians, so we actually appreciate the stimulus by the consumer advocates – thank you!

Protecting Your Rights – that’s our job

Shouldn’t all Californians be aware of all their rights to protect assets and wealth? Shouldn’t they be educated on all aspects of all plans available to them to solve their needs and issues? Don’t advisors have the responsibility to inform their clients and the general populous on their rights? A better question is would they be liable if they didn’t, and you lost wealth because of it? Hmmmm.

Our belief is the PRT is one of the greatest opportunities to protect private assets for a greater future and all Californians need to know what they don’t know. So we’ve invested in writing about the Private Retirement Trust planning in our books, we’ve created PRT University where we teach other advisors how to properly administrate such plans, and we’ve invested in social responsibility campaigns

Source: https://www.trust-cfo.com/californians-rights-asset-protection-retirement/