Asset Protection is the art of structuring one’s affairs so that one’s property is not vulnerable to predatory litigation. Certain kinds of insurance such as a homeowners policy, auto policy, or umbrella liability policy are entry level forms of asset protection. Operating a business under an entity such as a corporation or limited liability company is another level of asset protection. More advanced forms involve layers of trusts and business entities. The most aggressive protection may include offshore structures. Giving away property just before getting sued is not an effective method for asset protection because of laws against fraudulent conveyance. Secrecy or privacy provides limited asset protection like a smoke screen. It may hide things for a while, but bullets go through smoke. The highest forms of protection work even if the predators can see what you have, but can’t take it from you. Such structures are complicated. Complexity is a real cost. Asset protection improves with age. The optimum time to implement such planning is long before you get sued. The best asset protection is found in certain kinds of inherited trusts because they can protect you from risks that other structures may not (such as certain taxes, divorce, bankruptcy, medical crisis, and substance abuse).