The One Thing I Tell All My Clients… By Bob Bauman JD, Offshore and Asset Protection Editor Dear Sovereign Investor, John Goodman, founder and president of the posh Palm Beach International Polo Club, qualifies as a member of the "one percent" of the population who are "super-rich." He has an airplane, yacht, polo ponies, and an unspecified amount of his late father's $1.4 billion fortune from Goodman Manufacturing, a heating and air conditioning company.
But it is a recent and most tragic event for which Goodman is now making news.
Multimillionaire Goodman stands accused in a drunk-driving incident that killed 23-year-old University of Central Florida student Scott Wilson.
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The tycoon, whose club is located in Wellington, Florida and was driving his Bentley at the time of the incident, stands accused of DUI manslaughter, vehicular homicide, and leaving the scene of an accident with a blood-alcohol level allegedly twice the legal limit.
His criminal trial begins on March 6. He could spend up to 30 years in prison if found guilty.
While this incident is terrible on many levels, it is also bizarre.
On the advice of his counsel, Goodman has adopted his 42- year-old girlfriend Heather Hutchins as his third "child", as part of an asset-protection defense strategy. The goal is to protect some of his assets against a civil suit, in which millions of dollars in damages are likely to be sought.
However, as twisted as this case is, it highlights one primary point: Good estate planning should always be done early, with the best of legal intentions.
It should never be used as a last-minute attempt to avoid the consequences of a crime, alleged or otherwise An Unusual Solution Goodman's lawyers argue that under the terms of a reportedly $200 million pre-existing trust fund created for any of the mogul's "children," his new daughter, Ms. Hutchins, eventually could get at least one third of the fund's value, along with Goodman's two biological children, Harriet and John Jr.
Counsel for the Wilson family claim Goodman's legal maneuver is a way for the tycoon to maintain control over one third of the trust's assets, a situation that will become all the more important if he has to pay out millions of dollars in the civil suit. Goodman's counsel has denied this claim.
As an attorney, I know I can't make that judgment without knowing the terms of the trust involved and other facts about Goodman's estate plan.
But it underscores what I have long preached about the importance of early estate planning, with the added protection of an offshore components.
A senior U.S. Federal Reserve economist estimates that by 2050, the U.S. "baby boom" generation will pass on to their heirs some $41 trillion in assets, the largest potential inter-generational wealth transfer in world history.
Forbes magazine estimates that there now are 1,140 billionaires in America. A record 10.5 million U.S. households have a net worth of $1 million or more in 2012.
Despite the Great Recession that wiped out $15.5 trillion in household wealth in the U.S. alone, the total number of U.S. families with a net worth of more than $1 million, including real estate, will double by 2020 to 20.6 million.
But, in spite of these statistics, many wealthy people I meet remain completely unprepared for the unforeseen. Many don't even have a will. Perhaps the prospect of acknowledging mortality blocks the need for action. Noah Didn't Build the Ark When It was Raining An estate plan is essential to the long-term well-being of your family and heirs. Good estate planning will help avoid problems of control and sharing wealth with children. Many experts advise that good estate planning should include: • Making sure a basic plan is in place before diving into the more complex, and often irrevocable, estate planning.
• Avoiding, when possible, giving one child control over another
• Dividing up assets into dollar amounts, rather than percentages, to avoid disputes among beneficiaries over valuations and cost issues. On the other hand, most advice on estate planning understandably does not deal with middle-aged girlfriend adoption.
And, if you have a sizeable estate – one that is worth more than $1 million – I believe you should consider an offshore component.
When you move some of your estate offshore – be it an offshore bank for great currency and investment diversification or a foreign trust for more robust legal protection – your heirs enjoy far greater protection from domestic U.S. creditors and lawsuits.
Importantly, those assets can remain much more confidential, avoiding the publicity and hassle of the U.S. probate process.
But, perhaps more importantly, proper estate planning with the prudent use of an offshore component means that in the event of a crisis you probably won't have to adopt your girlfriend.
Faithfully yours, 
Bob Bauman
P.S. There are a world of ways to help protect your family's financial future, and trying to tackle them on your own can be overwhelming. That's why I created The Freedom Alliance; to make sure my readers have the best, most up-to-date information possible to make informed decisions on how to secure their wealth. Click here to read my latest report, and find out how you can get "Off the Grid" and make sure your money stays in your hands. | | >>RECENT ARTICLES | 2/20/012
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