Asset protection planning is the process of examining and utilizing a lawful variety of legal techniques that shield your assets from the claims of future creditors. These deter potential creditors from going after you, and frustrate them if they do, generally by making it difficult or impossible for future creditors to grab hold of your assets or collect judgments against you. In cases where significant sums are involved, asset protection planning often includes setting up a series of trusts, partnerships and off-shore entities to hold legal title to your assets. A future creditor who recognizes how difficult it would be to collect on any judgment it may win, might decide it makes little sense to pursue a claim, or be willing to settle for pennies on the dollar.

There is a very fine but sharp line between "legal" asset protection planning on the one hand, and actions to defraud creditors, which are criminal, on the other. For that reason it is very important to have an experienced attorney guide you through the process.