Asset protection planning has become much more important in recent years; and although related to estate planning, is very different than estate planning. Asset protection planning is the process of planning a client’s estate so the asset will be protected in the event of any litigation. Unfortunately, the top 3 ways most people in this country believe they will change their social standing in life is to:

Virtually every client owning assets regardless of the client’s profession is a target of a lawsuit. A client who owns and operates a vehicle, transacts any type of business or financial affairs, or interacts with others has liability exposure. Asset protection planning protects assets during the client’s lifetime so the assets may be preserved for the client’s benefit and eventually pass to his or her heirs pursuant to the client’s estate plan.

Without asset protection planning, the client may not be able to pass assets under an estate plan because they may be lost prior to death. In most states, there are many assets which are exempt and protected by statute and relevant case law from creditors’ collection actions.

In all asset protection plans, the client must start by analyzing his or her assets to determine which assets are exempt from collection action. In this booklet, only the primary or more important exemptions are summarized. After determining which assets are exposed to liability or at risk, then the client must select a plan for protecting those exposed assets

Exemptions (click on Exemption for more details)

• Homestead – Limited Exemption
• Retirement Accounts
• Insurance
• Wages and Earnings
• Tools of the trade and Implements of Husbandry
• Motor Vehicles
• Personal Property
• Personal Injury