The goal of asset protection planning is to change your creditor's economic analysis. One must analyze timing, the creditor, and the specific assets under consideration. Asset protection is not about hiding assets. It doesn't work. They will be found in a debtor examination and perjuring oneself is not an option.
You have the right to defend your assets against attackers. Vehicles, homes, bank accounts and more can potentially be lost. There are many examples of individuals being sued for the banal to the bizarre. Just google weird lawsuits.
Forms of Asset Protection
When unprotected you can lose everything. This is why frivolous lawsuits exist. There are ways to protect your belongings though. Some are simpler and others require more paperwork. These cost less than insurance and provide better protection. Each provide unique benefits which may or may not be for you:
Plan Ahead
Taking steps after a lawsuit or an event occurs, such as transferring title to assets, may be seen as a transparent effort to avoid a judgment. It can therefore be nullified. An ounce of prevention is worth a pound of cure.
Go through legal channels no matter what you do. Moving money in the wrong ways to the wrong places might put your belongings out of the reach of your creditors AND you, but the long arm of the IRS is sure to follow.
