Article Index

Consider Separate Protection for the Business or Investment Entities.

Planning to protect individually held assets does not necessarily result in the assets of a business or of an investment vehicle also being protected. This “second-tier” or “Level 2” planning may involve a combination of various techniques such as:

  • A trust being settled by the active company, naming the company and/or its owners as the beneficiary(ies);
  • An LP in which the company is a 99% limited partner, and to which liquid assets can be contributed;
  • An LLC in which the company is a 99% member and to which real estate is contributed;
  • A distribution of accumulated liquidity not otherwise reasonably required in the normal course of business;
  • A divisive reorganization to segregate various assets from company activities considered to be more risky than others;
  • An “equity strip” by which the equity in the company is liquefied (as opposed to liquidated), with the proceeds then being protected through one or more of the other techniques (which “equity strip” technique is particularly well-suited for accounts receivable and notes receivable); and
  • A sale of company assets to a leasing company owned by the client’s IEPT, with a subsequent leaseback to the company of the purchased assets.

Seminars & Events:

April, 2017 - CELESQ
“An Asset Protection Planning Primer for Estate Planning, Tax and Creditors Rights Lawyers”
Live Web Cast
May 31 – June 1, 2017 - 

SOUTHPAC TRUST OFFSHORE PLANNING INSTITUTE CONFERENCE 2017, “Asset Protection in a Changing World” (31 May 2017) and “Questions & Answer Panel on Industry Challenges to Asset Protection Structures” (1 June 2017)
Las Vegas, Nevada


View More Recent Seminars and Events

Contact Information

Barry S. Engel