Qualifications for Assisting Clients with Asset Protection, Estate and Dynasty Planning

John believes that families must always be structured so that they have taken into account all perils and always have in place the protective legal, financial and self help structures.

During his career, John has studied and practiced law focusing on estate planning, business law, philanthropic law and asset protection.

He and his firm approach the process of preserving and protecting families, businesses and charities by forming “Zaibatsu structures” (see our Preventive Law Study: The Ideal Estate and Asset Protection Plan for the Successful Family), which become multi-generation dynasties — analogized to a five-legged stool with a leg for (1) an enduring family, (2) family trusts, (3) an investment Limited Partnership, (4) successful family businesses, (5) emergency legal protection for all family members to make a strong family foundation.

These legal structures are put together like a toy from an erector set, starting with the simplest and the most basic first and adding the others as needed with uncomplicated connections as the family dynasty expands.

John perfected these techniques after more than 15 years of battling for his clients in the courtroom, handling large and complex lawsuits and seeing the consequences of improper legal structuring while at the same time working with thousands of clients to design their protective legal structures and, as a result, avoid lawsuits and other legal and financial complications.

Working with John in this quest for better preventive law techniques are partners he has trained, among whom are his two lawyer daughters. He tutored them by allowing them to work in his firm since they were very young, in a teaching atmosphere reminiscent of a martial arts Dojo.

As a third generation Arizonan, he prepared himself to practice law by attending the University of Arizona, first as an undergraduate and then at the Law School. He also enrolled in special studies in estate and business planning at Harvard University Law School with the professor known as the “Father of Revocable Trusts” and further prepared himself with other special studies in estate planning at the University of Miami Law School and New York University Law School.

John co-authored a textbook on the “Legal Aspects of Doing Business in Arizona.” As previously mentioned, he was the co-founder and chairman of the faculty of the College of Estate Planning attorneys and the founder and president of the College of Preventive Law.

He developed innovative approaches to the practice of estate planning by inventing the techniques for “legal architectural blueprints, (LABs)” “Zaibatsu protection structures,” “General staff of bumble bees,” and “Dynasty Thinking.”

The LAB is a one-page diagram with all the people, legal entities, assets and moves that may be understood as a glance making complex estate planning simple.

The “Zaibatsu Protective Structures” is formatting the family structures like the ancient Japanese Zaibatsu fort groupings that inter-protected each other.

The “General Staff of Bumble Bees” came from the realization that the attorney functions better for a client if he organizes a team of related professionals: CPAs, life insurance advisors, property and casualty insurance advisors, investment advisors and others who act with a variety of clients and bring intellectual pollen into the design and planning mix.

“Dynasty Thinking” relates to planning the family, business, investments, and foundation structures so they endure for at least four generations and so that that they all fit efficiently together and move assets from one generation to the next with minimal losses, greater safety, more security and continual harmony.

John was one of the first attorneys to design and use as part of the dynasty planning process the Revocable Family Fortress Dynasty Trust, The Irrevocable Family Fortress Dynasty Trust, the Durable Living Will, the Durable General Power of Attorney, the Durable Medical Power of Attorney, the Durable Mental Health Power of Attorney, the HIPAA Consent Document, the Enforceable Funeral and Burial Instructions and the Enforceable Medical Authorization for Minor Children (see Preventive Law Studies for more studies relating to these topics).

The first to write textbooks on how to prepare estate planning documents so they are legally valid in all 50 states, he is currently writing a book on advanced estate, tax and asset protection titled “The American Family Zaibatsu – How to Create a Successful Family Dynasty.”

John lectures on preventive-law-related subjects as a law professor at colleges and universities and at continuing education courses for lawyers, accountants, CPAs, financial planners, real estate brokers and other professionals. In the summer of 2008, he will be lecturing at a 4-day symposium to lawyers from all over the United States who want to be certified in Preventive Law. He co-hosts (with his daughter counselor Christine Forakis) a weekly radio show featuring topics on preventive law. Earlier in his career he hosted another radio show and was known as the “Father of Asset Protection.”

Qualifications as a Business Lawyer to Assist with: Forming, Operating and Succession Planning of Business Structures

John believes that businesses must be structured and operated so they will provide benefits for multi-generations.

While working as an estate-planning attorney, John and his firm found it necessary to give equal attention to business structuring.

The statistics are grim – 65% of business structures die in the second generation, and 85% die in the third generation. To avoid these unnecessary losses, John found that families must give special attention to create the security and harmony necessary for success in family businesses. It is important to note that all businesses are family businesses because all businesses are run by human beings who have families.

A key element of the family dynasty is the family business – either as a separate operating business or as a Limited Partnership investing in business stocks and bonds, loans and real estate property.

Legal and Financial Skills Relating Specifically to Businesses

Academic Studies

John co-authored a university textbook, “Legal Aspects of Doing Business in Arizona” and attended a specialized course study in business planning at Harvard University.

Personal Business Experience

John operated a family corporation, which included a citrus ranch, stocks and bonds, interests in a car rental business and a parts manufacturing business. He formed and operated a nationwide legal forms business that included 15 books of legal forms with instructions and is the founding director and legal counsel for a start-up water company that eventually sold for over $60,000,000.

Board of Directors Experience

As a first-hand, functioning board member for many businesses, John learned what works, what does not work, and how legal services and structures mesh with the governing body of business organizations. He is the founding director of the new Prescott College for four years and has used his position for teaching an experimental course on operating as a board member of a Board of Directors.

Direct Client Business Experience

John has experience with startups, problem resolution, assisting with succession planning, resolving internal disputes, planning future projects, helping clients through financial setbacks, and advising clients throughout a multiple of business happenings.

Experience Working with Professional Experts

John has identified and worked with legal specialists (litigation, patent, and securities attorneys), forensic accountants, management consultants, psychologists, human resource experts, appraisers, business brokers, lobbyists.

Writing and Teaching

Information on his teaching and samples of John's writings on business law can be found on his firm’s web site .

General Life Experience and Demeanor

From all of the above, John has the background and experience to understand what his clients have gone through and will be experiencing.

Most business meetings and conferences with attorneys are thought to be dull and conventional, but you can be assured that John will bring some color and common sense into the business planning process.

Qualifications as a Business or Charitable Director

John believes that a business is not mature and secure without at least three outside directors.

As part of John's more than 45 years experience as a practicing attorney, over 15 of those have been handling complex business litigation and later focusing on structuring family businesses, philanthropy, investments and family estate planning structures, coordinating them into multi-generation dynasties.

John:

• Is an active member of the Institute of Management Consultants.
• Is the founding member and managing partner of Goodson Manley Forakis PLC Law Firm.
• Is the founding president and chairman of the board of the PAAK Foundation, a 45-year-old foundation with seven divisions.
• Is a founding director of West Maricopa Combine, Inc., a 25-year-old corporation with five operating water companies (sold in 2006),
• Is a founding director of the new Prescott College – during a 4-year tenure, John used this position as an experiential education college course for board member training.
• Is a founding director of Valley Big Brothers.
• Has held positions of secretary and statutory agent for more than 300 businesses.
• Is a board member for multiple businesses and philanthropic boards.
• Has lectured on; (1) business planning, (2) operating Boards of Directors, (3) conducting meetings and (4) brainstorming techniques.
• Sponsored and taught three 2½ day workshops on; (1) business law, (2) estate planning and, (3) office organization for lawyers, accountants and business owners.
• Co-authored a University textbook on “Legal Aspects of Doing Business in Arizona.”

Non-Business and Non-Professional Experience

John has a wide variety of life experiences as a mountain climber; an expedition leader; journalist; an armored reconnaissance officer in Europe; coach of the winning U.S. Army Pistol Team in Europe; coach of the Le Clerk combat pistol, rifle, and machine gun teams; an escape and evasion instructor trained at the Pentagon; an Outward Bound instructor, the co-founder of the Reevis Survival School; a land navigation instructor; director and student of the Aspen Academy of Martial Arts; a member of the Association of Former Intelligence Officers.

John's Philosophy

Before you send your knights out on a business crusade, make sure your family castle is secure. Businesses must be structured with the internal checks and balances which will perpetuate the business with security, creativity, harmony and success for many generations.

Qualifications for Dealing with Charitable Enterprises

After receiving an education at the University of Arizona Undergraduate School and Law College with special studies at Harvard University and the University of Miami Law Schools, and having worked with clients for decades on creating successful family and business structures, John soon discovered that it was necessary for all of his firm's clients to become involved in philanthropic giving in order to successfully complete their life patterns.

A successful dynasty rests on a five legged stool; (1) the family structures, (2) the family investment structures, (3) the family business, (4) the family emergency structures, (5) lastly and importantly, family charitable structures including a family foundation.

John has observed the benefits of philanthropy and charitable giving to be as follows:

• Tax savings
• Having a receptacle for surplus assets
• Indirect benefits to the family and business by creating a better bonding with the rest of the community
• Improved family spirit
• Extended life and health

In order to better advise and teach on philanthropic subjects and involvement, John has developed the following qualifications for assisting clients:

1. Formed hundreds of family foundations
   Over the last 45 years, John and his firm have formed well over 400 family foundations.
2. Created over 40 operating foundations
   Operating foundations are 501(c)3 corporations that are active in executive teams and employees to promote education, religion, research and general welfare improvements. Some of the operating foundations for which John served as the formalizing attorney are: Prescott College, Southwest College of Naturopathic Medicine, International College of Classical Chinese Medicine, Reevis Mountain Survival School among others.
3. Served as a director for many philanthropic organizations
   John is a founding director of Valley Big Brothers of Phoenix and the Aspen Academy of Martial Arts. As founding director for Prescott College, John conducted at sessions as an experiential education class on how to function as a Director in a charitable organization.
4. Charitable gift giving
   John arranged for the gift of the Harvey Indian artifacts collection to the Heard Museum, and the Herman Dorothy historical photographic collection to Arizona State University. These gifts were valued at millions of dollars.
5. Educational presentations
   John has presented educational presentations on charitable giving as continuing education for lawyers and other professionals and to the general public in various cities throughout the United States at annual money shows for those with significant investment assets.
6. Officer for charitable organizations
   John has served as an officer for many philanthropic organizations and is currently president of The Pateman Aiken Avery Kachina (PAAK) Foundation, with over six subdivisions.
7. Preventive law studies
   John has authored or co-authored preventive law studies on charitable giving.

Whenever a family is thinking of involving their wealth in philanthropic or charitable endeavors, we will meet with them on a complimentary basis for the initial meeting.

Qualifications for Dealing with Probates, Guardianships and Conservatorships

John believes that probates, guardianships and conservatorships can be avoided and minimized with the correct preventive law structures and that trust administration will be more economical if trusts have the requisite preventive law provisions.

Even with preventive law protection for families being readily available, there will be those who fail to utilize this protection. As a result, their family will become involved in probate, guardianship and conservatorship proceedings, which require a high level of legal expertise to bring achieve optimal results, minimize contention and litigation, and speed conclusions. Because of these desired outcomes, it is necessary to engage an attorney who has the significant knowledge and experience required to manage the multi-faceted combination of challenges that result in probate, guardianship, conservatorship and trust administration situations.

John received his undergraduate and law degree at the University of Arizona with special studies in estate, tax and probate teachings at Harvard University, New York University, and the University of Miami Law Schools. He co-authored a textbook on the legal aspects of doing business in Arizona published by the University of Arizona Press. Most of his probate experience comes from being a legal gladiator in the Probate Courts of Arizona as chief counsel in handling probate, guardianship and conservatorship controversies.

Early in his career, he focused on and was selected by clients to handle probate will contests dealing with irregularities in wills and found people's worst traits come forward during contention between family members. John handled the estate of Jules Vermaesh, which case went to the Supreme Court twice and involved over 10 years of litigation. The Superior Court trial lasted over 30 days – one of the longest – and Judge Donald Froeb later commented that, in his entire judiciary career, this was the most interesting and exciting case over which he ever presided.

Other contributors to John's legal skills and knowledge in this area include:

1. Numerous case histories
   John has accumulated a variety of experience in all legal areas, resulting in a variety of forensic experience to draw from when dealing with subjects related to the probate area of law.
2. Significant estate-planning experience
   One of John's principal focuses in his distinguished law career has been the creation of wills, trusts and other testamentary documents. Through dealing with thousands of estate plans, John has seen the conditions that are likely to lead to probate proceedings. Jon created many trusts early in his career that are now being passed on from the grantors and trustees of one generation to the second, third and fourth generation of the families.
3. After-death and disability probate experience
   I have encountered over 800 death and disability cases where I was required to handle Probates with disability Guardianship and Conservatorships, and the successor on the administration of trusts. When assisting persons who were not previously my clients, it has given me insight in preventing them during the estate planning process.
4. Learning by teaching
   As mentioned above, John is one of the co-founders and chairman of the faculty of the College of Estate Planning Attorneys. Each month, problems related to the probate area of law practices are discussed and raised to be dealt with during the first part of the college's meetings. During later part of the meetings, John and the other attorneys and professionals have given presentations on how to prevent mistakes in estate planning. John is also the founder and president of the College of Preventive Law, created for the purposes of thinking like an international chess player – anticipating everything that could possibly go wrong and making every effort to prevent those things from going wrong. We must be ready with inexpensive remedies to handle these situations.
   
   John taught probate proceedings for many years to legal assistant classes at Phoenix College to develop a group of para-professionals who are familiar with this area of law.
   
5. Frequent expert witness
   John is often brought in by fellow attorneys to be an expert witness to testify in defense of or against attorneys who have made mistakes in the probate area.
6. Public presentations
   John gives frequent public presentations explaining the practice of law to the general populace and to other professionals through continuing education. The focus is always on prevention and on resolving and ameliorating litigation through settlement negotiations, mediation, and private arbitration. He encourages the use of an Integrity Agreement, which he designed to use as a progressive alternative dispute resolution method, for inclusion in all wills, trusts and any other legal documents he creates to minimize expensive and emotional litigation. Sometimes, the Integrity Agreement is brought into the family even after disputes have occurred to reduce the necessary expenditures and time required to resolve the family’s problems.