Some subscribers who have talked to me by phone have asked why I don't devote much space to the subject of privacy. That's gotten us into a discussion of the difference between financial privacy strategies and asset protection strategies. Sometimes the two goals can be achieved with the same device, but most of the time, the use of some asset protection entities will reduce your privacy and create more exposure of your financial affairs. Most of the lawyers who actually do a lot of asset protection work advocate full disclosure to the various tax agencies and any other regulatory agencies. Partnerships, limited liability companies, corporations and private foundations are entities authorized by law.
Individuals have certain rights and powers without the consent of the state.
A corporation or partnership only exists as a creature of the law. Without virtually full disclosure of the financial affairs of the partnership or corporation, the state won't grant the entity the benefits of a separate entity with it's own rights under the law. While revocable trusts don't provide any asset protection, an irrevocable trust might provide some protection. Certain aspects of the concern for privacy make a lot of sense. You just never know whether some innocent remark might be misconstrued.