Orlando, FL estates & probate attorney Jim Flick talks the primary goals of Asset Protection Planning. He notes that when working with a client on asset protection, he begins by defining clear objectives. The goal is to arrange their affairs to reduce attractiveness to potential creditors, incorporate insurance into the planning, and encourage favorable settlements as early as possible. Additionally, if litigation becomes unavoidable, the aim is to make the client’s assets as difficult as possible for creditors to access.

The process typically starts with ensuring proper insurance coverage, which is crucial because it provides legal representation in the event of a lawsuit and creates a defined pool of resources for creditors to pursue. Without insurance, the client is the only potential source of recovery.

Next, state law is leveraged, as certain states, like Florida, offer substantial planning opportunities that are often cost-effective. Once state law protections are maximized, more advanced strategies may be considered, including domestic asset protection trusts, offshore trusts, and the use of multiple entities to further safeguard assets.