There’s no such thing as an impenetrable asset protection plan or a guarantee that someone won’t receive a judgment against you. There is, however, a big difference between someone winning a judgment and being able to enforce it. There are two main goals when creating an asset protection plan: (1) avoid a lawsuit in the first place or (2) encourage quick settlement by making it so difficult and expensive for parties to sue you, they want out before they even get started.
There is no “one-size-fits-all” plan, and most asset protection plans require a combination of trusts and other structures. Many people believe that simply forming a limited liability company (LLC) will automatically protect their assets, but this is usually far from true. The following are some of the asset protection vehicles used by Dawson Law LLP®:
1. Domestic Asset Protection Trusts (DAPT)
2. Special Power of Appointment Trusts (SPAT)
3. Spousal Lifetime Access Trust (SLAT)
4. Irrevocable Life Insurance Trusts (ILIT)
5. Irrevocable Gifting Trusts
6. Qualified Personal Residence Trusts (QPRT)
7. Equity Stripping
8. Limited Liability Companies (LLC)
9. Family Limited Partnership (FLP)
10. Life Insurance and Annuities*
11. Maximization of state and federally protected property
*Dawson Law LLP® is not an insurance broker and does not sell or solicit insurance products.