Asset protection planning combines various legal techniques, quite often the layering of various entities, designed to protect assets from unknown future creditors. While this type of planning is intended to initially benefit the creator of the plan with appropriate integration to the overall estate plan, the benefits may also be realized by your heirs. There is not one type of plan or entity structure that will meet the goals of every individual. Proper asset protection planning requires intense client involvement to tailor the plan to ensure the most effective plan possible.
While these techniques are formulated to lawfully shelter assets from the individual’s liabilities, this accepted and recognized area of law does not involve “hiding” assets or making transfers in fraud of creditors.