The goal of asset protection is to separate you from your assets, so that your personal liability does not endanger them. This is done by titling your assets not in your personal name, but in various legal entities and trusts.
For instance, if you purchase a piece of real estate to use for rental income, you might form a limited liability company (LLC) to hold the property. That way, if a dispute arises with a tenant, the tenant will have to sue the LLC and his ability to recover will be limited to the assets held by the LLC.
The greater your assets, the more complex your asset protection plan will be, with multiple layers of protection. It will most likely involve setting up other legal entities, such as a limited partnership. Ultimately, it may involve setting up a domestic or offshore asset protection trust (or both), for the final layer of protection.
There is no “one size fits all” approach to asset protection. Each person’s financial goals and circumstances are different. This is why each asset protection plan needs to be carefully crafted with your needs in mind by a qualified asset protection attorney. Full-fledged asset protection involves setting up a sophisticated system of legal protection that serves to separate you from your assets, while still allowing you to maintain control over them.
This material has been prepared by Sollertis for informational purposes only and nothing herein is intended as legal advice for any particular or individual situation. You should not rely upon any information herein as a source of legal advice, and receipt of any such information does not create an attorney-client relationship between you and Sollertis. Viewers and readers should not act upon this information without seeking professional legal counsel. Prior results do not guarantee a similar outcome.
