You don't have to be a lawyer to figure out that the first step in asset protection is to stay out of court. Unfortunately, that's not always possible. Insurance is important, too. But, insurance policies come with a lot of fine print, and you know what that means. Some asset protection techniques are relatively simple.
Attorneys often recommend putting real estate into family limited partnerships, for example.
This is one way to give up ownership without giving up control. Aside from potential income and estate tax benefits, this may make property less attractive to plaintiffs. No one would want to sue only to end up with a judgment that makes him pay taxes on a portion of the partnership's income every year. He would not gain control of the property inside the partnership and could not force the partnership to distribute cash to him. Some asset protection techniques are more involved, like putting property into a trust or limited liability company set up offshore.