The concept of asset protection is straight-forward. Some assets, by law, are not reachable by creditors. If possible, and not detrimental to your overall financial goals, consider converting your assets into those forms that are protected. Common example: If you own real estate in your own name, it is not protected from creditors. If you own an interest in a limited liability company, it is an asset that will be protected in many circumstances. Transferring your real estate to an LLC should not have any impact on your financial goals and usually will have no tax consequences. But once you own the LLC and not the real estate (the LLC now owns the real estate you transferred to it), you have achieved a fairly good level of asset protection.

Assets that are shielded from creditors by law are few (common examples may include some equity in your home, certain retirement plans and interests in LLCs and limited partnerships (and even these are not always unreachable)). Assets that are almost always unreachable are those that you do not hold legal title to. In many cases it is possible to vest legal title to your assets in a trust, an agent or a nominee, while retaining all the control and enjoyment of the assets.

Asset protection attorneys use dozens of different structures to protect assets. Many are recommended in the Asset Protection Interview™ you find on this website. Depending on the level of protection you desire you may use one or more of these structures. Sometimes in conjunction with each other, and sometimes layering them on top of each other.