Asset Protection Planning

Most people are prone to believe that bad things happen only to others. Of course this is not true, and sometimes we are more vulnerable than we think. Are you in a high-risk profession? Could a lawsuit or bad business deal threaten your life’s work? Are you getting divorced? What if you were responsible for a serious accident? What if someone were injured in your home, on your boat or at your cabin? How can you protect your security and the financial legacy you have built for the ones you love?

With decades of experience in complex commercial, real estate, and structured financial transactions, the HBAA Estate Planning Group can help you protect your assets from unjust claims, opportunistic creditors and even lawsuits that may have some merit. If you are facing a liability situation, asset protection planning can also help you negotiate a reasonable settlement. The following are a few of the tools we use to protect assets:

LIMITED LIABILITY COMPANIES

Limited liability companies can be a smart way to protect income-producing assets while continuing to enjoy the income from those assets. Not only can you protect yourself from the LLC’s liabilities, but you can also protect the assets in the LLC from claims brought against you individually due to what is known as the “charging order limitation.”

ASSET PROTECTION TRUSTS

Utah is one of several states to authorize the use of the domestic asset protection trust (“DAPT”), an instrument enabling you to protect assets placed in trust from creditor claims while enjoying the use of, and maintaining a certain degree of control over, those assets.

QUALIFIED PERSONAL RESIDENCE TRUSTS

Your house is perhaps your most valuable asset, but it can also be the most vulnerable to creditor attacks. Like the DAPT, a qualified personal residence trust (“QPRT”) allows you to enjoy the use of property placed in trust, in this case your house, even though the property is not reachable by creditors. But the QPRT also can provide strong estate tax benefits in that it allows you to transfer ownership of your home to your children without over-utilizing your lifetime gift and estate tax exemptions.

OTHER IRREVOCABLE TRUSTS AND THE USE OF TRUST PROTECTORS

We can help you consider whether a host of additional types of irrevocable trusts are a good fit for you. With recent developments in the role of “trust protector,” some of the traditional drawbacks to irrevocable trusts, including the relinquishment of power over assets held in trust, are not as daunting as they once were.

RE-TITLING OF ASSETS

Sometimes protecting your assets is as simple as re-titling them in the name of the spouse who is less likely to be sued, re-titling assets from joint tenancy to tenancy in common, or titling assets in the name of a trustee or an LLC.

INSURANCE ANALYSIS

Whatever strategy you employ, we will help you analyze the insurance coverages you have and how far they will go in protecting your assets.


Although no asset protection strategy is 100% bulletproof, we can make it much harder for your creditors to pursue and reach your assets. If a liability arises, you will then be better prepared to deal with your creditors. Moreover, many of these asset protection methods may complement your overall estate planning and estate tax planning strategies.

Other areas of practice include:

To contact us or for more information, click here.

Hansen Black Anderson
Ashcraft PLLC
Call today for a consultation: 801.922.5000 3051 West Maple Loop Drive, Suite 325
LEHI, UT 84043

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