Chapel Hill, NC: 919-493-6351

Naples, FL: 239-933-2097

Asset Protection

Asset protection refers to various legal strategies designed to safeguard an individual’s or a business’s assets from potential risks, threats, or liabilities. The goal of asset protection is to minimize the impact of unforeseen events, such as lawsuits, creditor claims, bankruptcy, or other financial challenges, by legally and strategically organizing assets in a way that makes them less vulnerable to seizure or loss.

Key aspects of asset protection may include:

  1. Legal Structures: Choosing the right legal structures for assets, such as trusts, limited liability companies (LLCs), or corporations, can provide a level of protection by creating a separation between personal and business assets. This separation can help shield personal assets from business liabilities and vice versa.
  2. Insurance: Adequate insurance coverage is a fundamental component of asset protection. Adequate liability insurance, professional liability insurance, and umbrella insurance can mitigate financial risks associated with various events.
  3. Estate Planning: Proper estate planning involves organizing and distributing assets in a way that minimizes taxes and potential challenges to the estate. This may include the use of long-term trusts and other legal instruments to specify how assets should be managed and distributed upon death.
  4. Homestead Exemptions: In some jurisdictions, homestead exemptions protect a certain amount or all of the value of a person’s primary residence from creditors in the event of bankruptcy or other financial difficulties.
  5. Statutory Exemptions: Qualified retirement plans, such as 401(k)s, are exempt from creditors’ claims under federal law.  IRAs are exempt under the laws of many states, though it is much less common for inherited IRAs.  Some states exempt annuities as well.
  6. Legal Compliance: Adhering to all relevant laws and regulations is crucial for asset protection. Engaging in fraudulent transfers or other illegal activities can jeopardize the effectiveness of asset protection strategies and may lead to legal consequences.


It’s important to note that asset protection should be implemented proactively, ideally before any potential threats or legal issues arise. Engaging legal and financial professionals with expertise in asset protection is often advisable to ensure that strategies are tailored to individual circumstances and comply with applicable laws. Keep in mind that while asset protection is a legitimate financial planning practice, it cannot be used to defraud creditors or evade legal obligations.




Chapel Hill, NC

1414 Raleigh Road
Ste. 203
Chapel Hill, NC 27517


50101 Governors Drive
Ste. 155
Chapel Hill, NC 27517


1415 Panther Lane
Ste. 534
Naples, FL 34109