These problems can be avoided by making such arrangements in advance, having sound and proper purposes other than avoiding ones just debts, and to some extent using foreign jurisdictions to make seizure more difficult. Preparing your asset protection plan One of the best ways to protect yourself is to have professionals prepare an asset protection plan in advance of any problems. In the process of doing so, many people are discovering that they can eliminate most income taxes through the proper use of family limited partnerships, offshore trusts, corporations, and annuities. Creating an asset protection plan is not expensive, and provides a great deal of assurance that you and your family will have the benefit of the money you have built up through years of work. Asset protection plans are a relatively new area of law, prepared by lawyers who specialize in protecting what you own instead of in suing people.
Asset protection is different from traditional retirement or estate planning.
It is the systematic and integrated protection of your family and business from risk. Most financial planning is intended to help you establish wealth so you can retire, and pass on as much of that wealth as possible to your family after death. Asset protection plans include estate plans but are intended to also help you keep your wealth while you are living. They often involve legal structures such as family limited partnerships, children's trusts, exempt assets, offshore trust arrangements and living trusts. Asset protection plans are fully legal.