Table of Contents
CHAPTER 1 Introduction To Asset Protection1-1
| Why Asset Protection? | 1-2 |
| Situations That Create Danger | 1-4 |
| Sources of Lawsuits | 1-6 |
| Types of Liability | 1-8 |
| Basic Protection Concepts | 1-8 |
| Types of Creditors | 1-14 |
| Evading Creditors | 1-17 |
| Fraudulent Transfers | 1-17 |
| Badges of Fraud | 1-19 |
| Statute of Limitations | 1-22 |
| Criminal Penalties | 1-22 |
| Permissible Asset Transfers | 1-23 |
| Asset Protection Goals | 1-25 |
| Preparation | 1-28 |
CHAPTER 2 Insurance2-1
| Homeowners Insurance | 2-2 |
| Automobile Insurance | 2-2 |
| Disability Insurance | 2-3 |
| Life Insurance | 2-4 |
| Purpose | 2-5 |
| Tax Overview | 2-5 |
| Life Insurance Trust | 2-9 |
| Annuities | 2-14 |
| Deferred Annuity | 2-14 |
| Private Annuity | 2-15 |
| Buy-Sell Agreements | 2-17 |
| Definition | 2-17 |
| Entity & Cross-Purchase Agreements | 2-19 |
| Purchase Price & Terms | 2-30 |
| Community Property | 2-30 |
| Professional Corporations | 2-31 |
| S Corporations | 2-31 |
| Sole Shareholder Planning | 2-32 |
CHAPTER 3 Asset Placement3-1
| Ownership Vehicles & Entities | 3-2 |
| Individual Titles & Sole Proprietorship | 3-2 |
| Corporate | 3-8 |
| Trusts | 3-31 |
| Co-Tenancy | 3-60 |
| Partnership | 3-68 |
| Limited Liability Company | 3-82 |
| Retirement Plan | 3-86 |
| Custodianship | 3-90 |
| Estate | 3-91 |
CHAPTER 4 Bankruptcy4-1
| Federal Bankruptcy | 4-1 |
| Means Testing | 4-2 |
| Credit Counseling | 4-2 |
| Tax Law Changes Under the 2005 Act (BAPCPA) | 4-3 |
| Bankruptcy Types | 4-5 |
| Automatic Stay | 4-11 |
| Preferences | 4-15 |
| Priorities | 4-16 |
| Debt Discharge | 4-23 |
| Individual Bankruptcy Estate | 4-29 |
| Individual Debtor | 4-36 |
| Partnership Bankruptcy | 4-40 |
| Corporate Bankruptcy | 4-40 |
| Homesteading | 4-44 |
| Types of Homesteads | 4-44 |
| Property & Equity Covered | 4-45 |
| Who Can Homestead? | 4-46 |
| Excluded Debts | 4-46 |
| Garnishment | 4-47 |
CHAPTER 5 Avoiding Tax on Debt Cancellation & Foreclosure5-1
| Income Inclusion Rule | 5-1 |
| Exceptions from Income Inclusion | 5-2 |
| Reduction of Tax Benefits (Attributes) - §108(b) | 5-13 |
| Reporting | 5-25 |
| Amount Realized On Sale or Other Distribution of Property | 5-27 |
| Foreclosure | 5-28 |
| Discounted Acquisition of Debt | 5-37 |
| Transactions Involving Related Parties | 5-37 |
CHAPTER 6 Divorce Settlements & Divisions6-1
| Premarital Agreements | 6-3 |
| Uniform Premarital Act - The California Example | 6-3 |
| Benefits of a Premarital Agreement | 6-6 |
| Post-Nuptial Agreements | 6-6 |
| Divorce Settlements - The Tax Trap | 6-8 |
| Section 1041 | 6-8 |
| Application of §1041 | 6-8 |
| Incident to Divorce | 6-13 |
| Transfers in Trust | 6-15 |
| Third Party Transfers | 6-15 |
| Property Basis | 6-16 |
| Liabilities | 6-20 |
| Holding Period | 6-20 |
| Notice & Record Keeping | 6-20 |
| Purchases Between Spouses | 6-23 |
| Residence | 6-23 |
| Business & Investment Property | 6-24 |
| Selected Asset Divisions | 6-26 |
| Installment Obligations | 6-26 |
| Business Interests | 6-27 |
| Insurance Policies | 6-30 |
| Pension Benefits | 6-31 |
CHAPTER 7 Protecting Assets From Old Age & Catastrophic Illness7-1
| Managing the Estate | 7-1 |
| Joint Tenancy | 7-2 |
| Conservatorship | 7-2 |
| Durable Power | 7-3 |
| Revocable Living Trust | 7-4 |
| Catastrophic illness | 7-6 |
| Medicare | 7-6 |
| Medicaid | 7-7 |
| Private Insurance | 7-16 |
| Health Care Decisions | 7-16 |
| Supplemental Security Income | 7-19 |
| Income | 7-19 |
| Assets | 7-20 |
| Disability Benefits | 7-21 |
| Blind | 7-21 |
| Kidney Disease | 7-22 |
| HIV/AIDS | 7-22 |
Answers & Explanations7-24
Glossary7-68
Index of Keywords & Phrasesa
Course Details
Author: Danny Santucci, J.D.
Danny earned his Bachelor of Arts in Political Science from the University of California at Irvine in 1969. He received his Juris Doctorate from Boalt Hall School of Law, University of California at Berkeley in 1972, at which time he began practice as a tax attorney in Southern California.
His legal career was initiated with the business and litigation firm of Edwards, Edwards and Ashton. Later he joined the Century City entertainment firm of Bushkin, Gaims, Gaines & Jonas working for many well-known celebrities. In 1980, Danny established the law firm of Santucci, Potter and Leanders, in Irvine, California. With increasing lecture and writing commitments, Danny went into sole practice in 1995. His practice emphasizes business taxation, real estate law and estate planning.
Danny has been an officer and active member in various organizations including the Glendale Bar Association, Century City Bar Association, Orange County and Los Angeles County Bar Associations, California State Bar Association, Toastmasters and Lions Club. He also avidly supports the American Association for the Advancement of Science. He has been admitted to practice before all California and federal courts including the United States Tax Court and the United States Supreme Court.
Serving as a lecturer for the Continuing Education of the Bar of California, Golden Gate University, and numerous state C.P.A. societies, Danny teaches a variety of tax, business and real estate courses. Danny has been in demand all across the country as a speaker for all levels of professional and civic organizations and numerous major seminar circuits. Danny spoke to over 2,000 people per month and traveled more than 150,000 miles annually.
In 2015, he withdrew from the lecture circuit to devote himself to tax research and writing. The author of numerous texts, he is listed in "Who’s Who in Creative Real Estate" and is admitted to the American Exchangor’s Hall of Fame.
Publication/Revision Date: 9/22/2026
Course Exam Questions (online): 120 (multiple-choice)
Program Delivery Method: Self-Study (NASBA QAS Self-Study)
Available Formats of Course Text: PDF or PDF plus printed copy sent in the mail
Course Level, Prerequisites, and Advance Preparation Requirements
| License | Course Level | Prerequisites | Advance Preparation Requirements |
|---|
| CPA | Overview | None | None |
| CFP® | Overview | None | None |
| EA/OTRP | Overview | None | None |
* This program is appropriate for professionals at all organizational levels.
Sponsor ID Numbers
National Registry of CPE Sponsors ID: 107615
CFP Board Sponsor ID: 1008 — Course ID: 195321
IRS Qualified Sponsor ID: FWWKO — Course ID: FWKK0-T-00797-26-S
State CPA Board Sponsor ID Numbers (where applicable)
Florida Division of Certified Public Accounting: 0004761
Hawaii Board of Public Accountancy: 14003
New York State Board for Public Accountancy: 002146
Ohio Accountancy Board: CPE .51 PSR
Pennsylvania State Board of Accountancy: PX178025
Texas State Board of Public Accountancy: 009349
Learning Objectives
Chapter 1: Introduction to Asset Protection
Major Topics
- Situations that create danger
- Sources of lawsuits
- Types of liability
- Basic protection concepts
- Types of creditors
- Badges of fraud
- Statute of limitations & criminal penalties
- Permissible asset transfers
- Asset protection goals
- Preparation for asset protection
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Specify the goals and purposes of asset protection, the objections some people have about shielding assets from creditors, and reasons for asset protection.
- Identify situations that put assets and financial security at stake and the common sources of lawsuits, recognize the dual concepts of liability, and determine the asset protection concepts of insurance, asset placement, and statutory protections.
- Specify the types of creditors associated with asset protection and fraudulent transfers, recognizing their salient characteristics and identify the fraudulent transfer provisions, badges of fraud, statutes of limitation, and potential criminal penalties.
- Determine net worth using a balance sheet, identify asset values, and show the preparation of a balance sheet in the context of determining the depth and scope of suitable asset protection planning.
After studying the materials in Chapter 1, answer exam questions 1 to 26.
Chapter 2: Insurance
Major Topics
- Homeowner's, automobile, and disability insurance
- Life insurance
- Annuities
- Buy-sell agreements
- Entity & cross-purchase agreements
- Purchase price & terms
- Community property
- Professional corporations
- S corporations
- Sole shareholder planning
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify characteristics of homeowners, automobile, and disability insurance and what asset protection they may offer.
- Specify persons in whom rights are placed by life insurance and reasons to purchase life insurance and the benefits, uses, and types of life insurance, and identify variables that influence when life insurance is taxable.
- Determine what constitutes an annuity and the types and characteristics of annuities specifying their tax advantages and disadvantages, and recognize the types of buy-sell agreements recognizing their tax and legal advantages and pitfalls.
After studying the materials in Chapter 2, answer exam questions 27 to 41.
Chapter 3: Asset Placement
Major Topics
- Individual titles & sole proprietorship
- Categories of C corporations
- S corporations
- Types of trusts
- Trust taxation
- Co-tenancy
Chapter 3
Major Topics
- Partnership taxation & recapitalization
- Family partnerships
- Limited liability companies
- Retirement plans
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Recognize the ways to hold property and what taxpayers must do before beginning an asset protection program.
- Specify the advantages and disadvantages of using placement entities and titles such as joint tenancy, corporations, trusts, partnerships, LLCs, retirement plans, and custodianship for asset protection purposes.
- Identify the advantages and disadvantages of a limited liability company (LLC) and problems associated with its relatively recent history.
- Recognize how retirement plans can be used to provide substantial lifetime benefits to a business owner and to employees while simultaneously providing asset protection.
- Identify important characteristics of custodianship and estates as asset protection tools.
After studying the materials in Chapter 3, answer exam questions 42 to 67.
Chapter 4: Bankruptcy
Major Topics
- Tax law changes
- Bankruptcy types
- Automatic stay
- Preferences
- Priorities
- Debt discharge
- Individual bankruptcy estate
- Individual debtor
- Corporate bankruptcy
- Homesteading & garnishment
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Determine how the 2005 Bankruptcy Act changed procedures, identify the most common bankruptcy types and their filing requirements, specify the rules for automatic stay, and identify preferential payments specifying the priority of creditor claims.
- Specify debts covered under homesteading, and determine permissible garnishment amounts recognizing special garnishment rules.
After studying the materials in Chapter 4, answer exam questions 68 to 83.
Chapter 5: Avoiding Tax on Debt Cancellation & Foreclosure
Major Topics
- Qualified farm debt exclusion
- Real property business debt
- General ordering of tax attribute reduction
- Reduction of tax benefits
- Basis reduction
- Partnership bankruptcy
- Corporation stock-for-debt rule
- S corporation bankruptcy
- Foreclosure
- Discounted acquisition of debt
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Recognize the effect that debt cancellation has on net worth and potential income inclusion from cancellation of indebtedness income, and specify exceptions to the general income inclusion rule and their tax impact.
- Identify tax attribute reductions and their application when reducing canceled debt and recognize the depreciable property election in reducing the basis of depreciable property before reducing any other tax attributes.
- Determine gain or loss resulting from foreclosure or repossession identifying reporting and filing requirements, specify the timing and character of the gain or loss, and cite the hidden income tax danger when acquiring one's own debt at a discount.
After studying the materials in Chapter 5, answer exam questions 84 to 94.
Chapter 6: Divorce Settlements & Divisions
Major Topics
- Premarital agreements
- Application of §1041
- Incident to divorce
- Property basis
- Purchase of residence between spouses
- Purchase of business & investment property between spouses
- Division of corporate business interests
- Division of partnership business interests
- Deferred v. present division of benefits
- Individual retirement arrangements
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify the formats that courts typically follow if a couple does not have a marital agreement, including how search agreements relate to divorce settlements and divisions.
- Determine the application of §1041 to interspousal transfers and the transferor's and transferee's property basis under §1041(b).
- Specify the application of §1041 to selected business, retirement, and investment assets and identify the elements of a Qualified Domestic Relations Order (QDRO).
After studying the materials in Chapter 6, answer exam questions 95 to 107.
Chapter 7: Protecting Assets from Old Age & Catastrophic Illness
Major Topics
- Managing the estate
- Medicare
- Medicaid & countable assets
- Medicaid & non-countable assets
- Medicaid & inaccessible assets
- Private insurance
- Healthcare decisions
- Supplemental Security Income
- Income & assets
- Disability benefits
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Specify the tools to manage an incompetent person's estate, including powers of attorney, trusts, and conservatorship.
- Determine eldercare benefits of Medicare and Medicaid, identify possible health care decisions such as having a power of attorney for health care, and recognize distinctions between Supplemental Security Income and Social Security disability benefits.
After studying the materials in Chapter 7, answer exam questions 108 to 120.
