In the real world, asset protection planning is not a game of silver bullets or invincible armor. However, this doesn’t prevent asset protection hucksters from marketing their "services" that way, and it doesn't prevent an unsophisticated public from buying into it.
A tale of gullibility, faked complexity, and predictable endings can be found in a recent Forbes article titled “Bill 'Bulletproof A$$et Protection' Reed's Complex Plan Pierced By Nominee And Alter Ego Theories.” The case of U.S. v. Cohen, C.D.Ill. Case No. 08-3282 (Mar. 8, 2013), chronicles an asset protection plan that blew up in the faces of its intended beneficiaries. Just the name used to market the scheme, “Bulletproof A$$et Protection,” should give pause to the prudent.
Asset protection is all about understanding the legal nature of your assets and the potential risks that may threaten your future use and enjoyment of those assets. State and federal laws offer varying degrees of protection, as do time-tested legal strategies. Understanding the applicable rules and the relative advantages and limitations of different strategies is critical. Asset protection planning involves art as well as science, but it’s not magic.