Introduction

• Author: Jeffrey Robert Matsen
• Profession: Founder and managing partner of Matsen Voorhees Mintz LLP
• Pages: 1-6

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CHAPTER

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Introduction

Asset Protection Planning

Business persons have always been concerned about the exposure of their personal assets to claims against

their businesses. Certainly, protecting one’s assets from the myriad risks involved in business and personal

financial planning is not a novel objective or planning idea. The corporate form of business entity, with

its shield of limited liability, has been invoked by professionals for centuries to protect those personal re-

sources. Over the last few decades, expanding theories of liability and the proliferation of litigation have

given increased emphasis to Asset Protection Planning to the extent that it is now a well-recognized area

of practice. It certainly comes within the concept of lifetime Estate Planning—involving the protection

and conservation of accumulated wealth or asset base.

Shield of Liability

Business owners, physicians, and real estate investors must always be extremely concerned about poten-

tial liability against their personal assets, arising from the operation of the business or ownership of the

real estate. Entities such as Corporations, Limited Liability Companies, and Limited Partnerships exist in

part to prevent this potential personal liability.

•Corporations are formed to operate businesses and shield the corporate owner from personal

liability against creditors of the business.