What happens if a legal claim exceeds your insurance coverage or even worse, isn't insurable?  Could you be held legally responsible for acts of your employees, children and guests?  Do typical busiess owners understand under what circumstances a court may redistribute their wealth to others involuntarily?  Divorce, business disputes, family disputes, predatory litigation, personal liability and dozens more clog the courts every day.  Nearly 35 million lawsuits are filed each year in the United States, or approximately 95% of the world's lawsuits.  Nearly half of those lawsuites were regarded as "frivilous" meaning they had little merit based on the facts themselves. Regardless of the merits of the case, these judgments across the country totaled over $200 billion in awards last year alone,


Proactive asset insulation is the purposeful structuring of asset ownership to limit liability exposure, make assets difficult to attachment and segregate risk.  Often, techniques are used in combination to enhance protection and benefits.  A creditor may place a lien on assets owned personally, jointly, through partnership or corporation. Statutes governing preferred entities preclude a lien on entity assets for claims against the owner.  Thus, achieving asset protection involves using entities that have insulative characteristics, such as LLC's, LLP's and some trusts, then separating assets more likely to generate a liability to the owner.  


If you would like to learn more about how you can integrate asset insulation into your planning needs and protect yourself from creditors and predatory lawsuits please feel free to contact us.