What is asset protection?

Asset protection is financial planning to legally protect individual and business assets from the reach of potential future creditors, i.e., before a claim or liability arises, not after. Asset protection is not designed to replace liability or professional insurance.

What are the common asset protection strategies?

Asset protection planning involves an analysis and implementation of various strategies to protect financial assets in the event of a claim, such as:

  • Assessing available exemptions from creditor’s claims (e.g., homestead, wage exemption, annuities, life insurance contracts, individual requirement accounts – 401K,403(b), SEP, social security,  IRA, tenancy by the entirety, equity in a motor vehicle, personal property, etc.);

  • Choosing the right business entity for tax considerations and separation of assets and liabilities (e.g., corporation (S corp. v C corp.), limited liability company, limited partnership, general partnership, limited liability partnership, limited liability limited partnership;

  • Maintaining the corporate veil (e.g., separating personal and business financial accounts and assets, maintaining proper records, etc.)

  • Setting up a trust (e.g., Florida asset protection trusts, offshore trusts, etc.);

  • Section 529 arrangements, i.e., qualified tuition programs;

  • Marital dissolution planning (e.g., prenuptial and postnuptial agreements);

  • Purchasing appropriate insurance (e.g., auto, homeowners or renters, business, umbrella insurance, health, disability, critical illness insurance, etc.);

  • Bankruptcy considerations.

How can we help?

Based on the nature and extent of your assets, we can help you determine what asset protection measures to take in the event of a claim against you or your business. Call us now for an asset planning consultation. (386) 248-3000.