Anyone who has created
personal wealth has not done so without also creating significant
personal liability. Asset protection is the means by which individuals
protect what they have accumulated from our litigious society to ensure
economic well-being for themselves and their family. Asset protection in
essence is estate planning taken to the next level. Typically, a
client's motives for asset protection arise earlier in life than estate
planning considerations, but both aspects of protecting one's estate and
tax savings are major factors in asset protection. If properly
implemented, asset protection protects clients from current or potential
creditors and claimants; this is particularly important in a
recessionary period or a down turn in the economy. However, asset
protection is not limited to hard times, with spiraling malpractice
awards against professionals many physicians, attorneys and accountants
are utilizing these techniques to preserve their wealth. Business owners
are prime candidates for asset protection, because they can be sued by
employees, customers, or even the government and have the potential for
not only compensatory damages but punitive damages.
