The Five Levels of Asset Protection Planning
There are many aspects to asset protection planning. For some persons, asset protection planning can be as simple as relying on state and federal laws that protect certain assets. For others, asset protection planning might involve transferring assets to protect them from creditors. Yet for others, such planning may result in establishing asset protection trusts or captive insurance companies. What level of asset protection planning is recommended will depend on a number of factors, including the nature of the potential debtor's assets, his/her family situation, state of domicile, the degree of exposure to potential claims, and the ability (if any) to adequately insure against potential claims. In this report, the person seeking to protect assets shall be referred to as the "debtor".