Building assets involves hard work. Typically, you would expect that the assets you’ve accrued through business and hard work shouldn’t be under any risk from future liabilities, lawsuits, and creditors. But that is not usually the case.

• Set up your asset protection structure BEFORE you face a lawsuit — not after
• Use LLCs, corporations, or limited partnerships to separate personal and business assets
• Consider a domestic asset protection trust (DAPT) for maximum protection
• Keep your corporate veil intact by following proper business formalities
• Use family limited partnerships to transfer wealth while maintaining control
• Consult with a team of professionals who understand how tax, legal, and financial strategies interact

What Is Asset Protection?

Asset protection is the adoption of various strategies to protect one’s wealth. It is an essential component of financial planning and ensures you have a safety net against claims from creditors. Individuals and businesses use asset protection to limit the access creditors have to various crucial assets while staying within the bounds of the debtor-creditor law.

When Should You Start?

The best time to set up asset protection is now — before you face any threat. You must set up your structure prior to a lawsuit in order to protect your assets. Initiating asset protection early helps prevent a fraudulent transfer ruling. You also get reasonable negotiation leverage, ensuring a favorable outcome from any lawsuit or claims.

The Second Estate Approach

At The Second Estate, we take a comprehensive approach to asset protection that combines business structuring, trust planning, tax strategy, and investment planning. Our team of CPAs, financial advisors, and legal professionals work together to create a customized protection plan that fits your specific situation and goals.