The process of taking steps to minimize the risk of creditors or other claimants from being able to reach your assets. This can include setting up a different entity, such as a family limited partnership or limited liability company for each property, business, etc.

The process of taking steps to minimize the risk of creditors or other claimants from being able to reach your assets. This can include setting up a different entity, such as an LLC, for each property, business, etc. Thus, if one particular property is subject to a suit (e.g., a tenant is hurt on one rental property) the claimant will be limited to the assets from that particular property or entity. This can prevent a domino effect against your other assets. An LLC, just like a limited partnership, offers important benefits where asset protection is important.

Willful legal planning to achieve protection from Medicaid ""spend-down" requirements, typically provided by irreversible trusts.

A sum subtracted from a family's total assets when determining the expected family contribution to college costs. This provides a safety net for families, and the allowance increases with the age of the parents.