Asset protection, also known as asset preservation or wealth protection, is the process of safeguarding one's wealth and assets from potential creditors, lawsuits, or other legal actions. There are several strategies and tools available for asset protection, including the use of trusts, limited liability companies, and various insurance products.

One common method of asset protection is the establishment of a trust. A trust is a legal arrangement in which a person, known as the grantor, transfers their assets to a trustee, who manages the assets on behalf of the beneficiaries named in the trust agreement. By placing assets in a trust, the grantor can protect them from potential creditors, as the assets are no longer considered to be owned by the grantor.

Another popular tool for asset protection is the use of limited liability companies (LLCs). By forming an LLC, individuals can separate their personal assets from their business assets, thereby protecting their personal wealth from any legal claims or obligations of the business.

Insurance products also play a role in asset protection. For example, liability insurance can help protect individuals from the financial consequences of lawsuits or other legal actions. Similarly, life insurance and annuities can provide a source of protected wealth for beneficiaries.

Overall, asset protection is an important consideration for individuals and businesses alike. By implementing the right strategies and tools, it is possible to minimize the financial risks associated with legal actions and preserve one's wealth for the future.