Phoenix Asset Protection Planning Attorney
Planning is an important step in the estate planning process, regardless of age, health, and wealth.
Building wealth takes years of hard work, but protecting it requires careful legal planning. Whether you own a business in Phoenix, have investment properties, or simply want to preserve your family’s financial future, asset protection planning can help reduce unnecessary risk and provide greater peace of mind.
Asset protection planning is more than preparing for what happens after you pass away. It is about creating legal structures that help protect your assets during your lifetime while also supporting your long-term estate planning goals. If you are concerned about lawsuits, creditor claims, professional liability, or protecting assets for your spouse and children, developing a proactive plan today can make a significant difference tomorrow.
Phoenix is home to thousands of entrepreneurs, medical professionals, contractors, real estate investors, and small business owners who face unique liability risks. As your assets grow, so does your exposure to potential legal claims. Taking action before problems arise gives you more options for protecting the wealth you’ve worked so hard to build.
Depending on your circumstances, asset protection may involve trusts, limited liability companies (LLCs), corporations, family limited partnerships, or other legal entities that separate personal and business assets. These strategies are designed to work alongside your insurance coverage to create additional layers of protection and make it more difficult for creditors to reach assets that have been properly structured.
At Kierman Law,, we help clients throughout Phoenix create customized asset protection plans that reflect their financial goals, family priorities, and level of risk. Every plan is tailored to the individual because no two families or businesses have the same needs. If you’re looking for an experienced Phoenix asset protection attorney, contact Kierman Law to schedule a consultation and learn how proactive planning can help protect your assets for years to come.
Asset Protection Strategies
| Strategy | Beneficiary? | When are the Assets Protected? | Features of Strategy |
| Insurance (property, auto, business, etc.) | Client | During Client’s Lifetime | First line of defense against liability. In order to be effective, ensure that policy limits are in line with current assets and net worth. Also, confirm that coverage is still adequate. |
| Tenants by Entirety | Client | During Client’s Lifetime | In applicable states, this type of ownership between a married couple protects the property from the creditors of one of the spouses. Depending upon your state law, this may be limited to real property. |
| Investing in Retirement Accounts | Client | During Client’s Lifetime | 401(k)s and IRAs (excluding inherited IRAs) are protected from creditors in bankruptcy (with certain limitations). In addition to protecting these assets, you are also growing your retirement fund. |
| Domestic Asset Protection Trust (DAPT) | Client | During Client’s Lifetime | Allows you to fund the trust with your own property, maintain an interest in the trust as a beneficiary, and protect the trust’s assets from your creditors. Only allowed in states with DAPT statutes. |
| Spousal Lifetime Access Trust (SLAT) | Spouse | During Client’s Lifetime | A trust established for the benefit of your spouse. Should you be sued, these funds are not available to creditors and can be used by your spouse to support the family. |
| Lifetime Qualified Terminal Interest Property (QTIP) Trust | Spouse | During Client’s Lifetime and At Client’s Death | During the less wealthy spouse’s lifetime, they will receive all income and possibly the principal. If the less wealthy spouse dies first, assets will be included in their estate, making use of their estate tax exemption. Funds may continue for the benefit of the surviving spouse and distributed to the wealthier spouse’s chosen heirs. |
| Discretionary Trust | Spouse and/or Children | During Client’s Lifetime and At Client’s Death | Funds are held and invested by a trustee and are only distributed on a discretionary basis according to your stated wishes. Can be a standalone trust but can also be incorporated with other trusts. |
| Credit Shelter Trust | Spouse | At Client’s Death | Spouse is the beneficiary of the trust, but it is not considered a part of his or her estate. If the surviving spouse remarries, the assets cannot be commingled with those of a new spouse. |
| Irrevocable Life Insurance Trust (ILIT) | Spouse and/or Children | At Client’s Death | Holds life insurance proceeds for the intended beneficiaries as opposed to distributing them outright. Can also provide liquidity for owners of illiquid assets (farms, businesses, etc.). |
| Standalone Retirement Trust (SRT) | Children | At Client’s Death | Holds an inherited IRA, or other qualified retirement account, for the benefit of a named individual(s). Protects the inherited account from the beneficiary’s creditors because the beneficiary is only entitled to distributions according to the trust terms. |
| Inheritor’s Trust | Children/Grand-children | At Client’s Death | Gives the beneficiary control over the assets while allowing for protection from creditors. Beneficiary will have the power to appoint or remove the trustee and replace the trustee with a different one. The trustee has the authority to make distributions. |
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