Explore commonly used personal finance terms.
Asset protection involves using legal methods to safeguard one’s assets from potential creditors, lawsuits, or claims. Common strategies include establishing trusts, forming limited liability entities, and securing insurance. Asset protection planning is essential for high-net-worth individuals, business owners, and professionals exposed to liability. By proactively protecting assets, individuals can minimize the risk of asset loss due to legal judgments or claims, preserving wealth for future needs.
