Why Choose Law Offices of Rozsa Gyene for Asset Protection?
Personalized Protection Strategies
Every client's situation is unique, requiring customized asset protection strategies. We take the time to understand your specific risks, assets, and goals to design a comprehensive protection plan that works for you.
From irrevocable trusts to family limited partnerships, we employ proven legal structures that have successfully protected our clients' wealth for over 25 years. Our strategies are court-tested and designed to withstand legal challenges.
Comprehensive Asset Protection Solutions
Domestic Asset Protection Trust
Starting at $2,500
The gold standard in asset protection. Protects assets while keeping them in the United States.
- Protection from future creditors
- Maintained control as beneficiary
- Estate tax benefits
- Nevada or Delaware trust options
- Divorce protection features
Family Limited Partnership
Starting at $1,800
Protect family assets while maintaining control and reducing estate taxes.
- Charging order protection
- Estate tax discounts
- Centralized management
- Succession planning tool
- Asset consolidation
LLC Protection Strategy
Starting at $1,200
Use LLCs to compartmentalize risk and protect multiple assets. Create separate legal entities for different properties or investments.
- Separate LLC for each asset
- Series LLC options
- Wyoming LLC benefits
- Anonymity features
- Charging order protection
Advanced Protection Strategies
Offshore Asset Protection
Custom Pricing
Maximum protection through international structures for high-net-worth individuals.
- Cook Islands or Nevis trusts
- Offshore LLC combinations
- International diversification
- Maximum creditor deterrence
- Privacy enhancement
Integrated Estate & Asset Protection
Starting at $3,500
Combine estate planning with asset protection for comprehensive wealth preservation.
- Living trust integration
- Irrevocable trust strategies
- Business succession planning
- Tax optimization
- Multi-generational protection
Equity Stripping & Liens
Starting at $1,500
Remove equity from exposed assets to make them unattractive to creditors.
- Friendly liens
- Home equity management
- Business equity protection
- Debt shield strategies
- Asset encumbrance
Who Needs Asset Protection?
Business Owners
Separate business risks from personal assets
Medical Professionals
Protect against malpractice claims exceeding insurance
Real Estate Investors
Shield properties from tenant lawsuits and liabilities
High Net Worth Individuals
Preserve wealth from frivolous lawsuits
Anyone with Assets
In our litigious society, everyone is at risk
Parents & Families
Protect your children's inheritance
Your Asset Protection Journey
Risk Assessment
We analyze your current asset exposure, identify vulnerabilities, and assess potential threats to your wealth.
Custom Strategy Design
Based on your unique situation, we design a tailored protection plan using the most effective legal structures.
Implementation
We create and implement your protection structures, ensuring proper funding and legal compliance.
Ongoing Maintenance
Regular reviews and updates ensure your protection remains effective as laws and circumstances change.
Understanding Asset Protection in California
Asset protection is the legal process of structuring your wealth to shield it from potential creditors, lawsuits, and financial threats while remaining compliant with California and federal laws. The goal is to make it difficult, costly, or impossible for judgment creditors to access your assets, encouraging settlement or discouraging litigation entirely.
Effective asset protection must be implemented before you face a claim. Once a lawsuit is filed or a creditor emerges, transferring assets becomes fraudulent conveyance and can be reversed by courts. The best time to protect your wealth is now, when you don't need it - not later when it's too late.
Common Threats to Your Assets
Your assets face numerous risks that proper planning can mitigate:
Lawsuits & Judgments
Personal injury claims, business disputes, professional malpractice, auto accidents, slip-and-falls on property you own
Divorce
California is a community property state - without protection, your spouse may claim half of assets acquired during marriage
Creditors
Business creditors, personal loans, medical bills, credit card debt, unpaid taxes
Professional Liability
Doctors, lawyers, accountants, contractors, and other professionals face malpractice exposure
Bankruptcy
Business failure, personal financial crisis - certain assets can be protected even in bankruptcy
Government Claims
IRS liens, state tax claims, regulatory penalties, civil forfeiture
Asset Protection Strategies & Tools
Irrevocable Trusts
Assets transferred to properly structured irrevocable trusts are no longer owned by you, making them unreachable by personal creditors. Popular options include Domestic Asset Protection Trusts (DAPTs) in favorable states and offshore trusts for maximum protection.
Limited Liability Companies (LLCs)
Holding real estate or business assets in LLCs creates liability barriers. California offers "charging order protection," limiting creditors to a lien on distributions rather than seizing the LLC interest itself.
Umbrella Insurance
Liability insurance ($1-5 million umbrella policies) provides first-line defense against lawsuits. Cheaper than legal structures, but has limits and exclusions. Best used in combination with legal asset protection.
Homestead Exemption
California's homestead exemption protects between $300,000-$600,000 of home equity (depending on circumstances) from creditors. Applies automatically - no filing required. Critical protection for your primary residence.
Retirement Accounts
401(k)s and qualified pension plans have unlimited creditor protection under federal law. IRAs are protected up to $1.5 million in bankruptcy. Maximize contributions to shield assets.
Business Entity Selection
Sole proprietorships provide zero protection - your personal assets are exposed. Corporations and LLCs create liability shields. Choose the right structure before you start or grow your business.
California-Specific Asset Protection Laws
Key California Protections:
- Homestead Exemption: $300,000 (single), $600,000 (elderly/disabled/low income) - protects primary residence equity
- Wage Garnishment: Limited to 25% of disposable earnings or amounts above 40× minimum wage, whichever is less
- Community Property: In marriage, only community property assets are vulnerable to either spouse's separate debts (with exceptions)
- Tenancy by Entirety: NOT recognized in California - married couples don't get this added protection available in some states
- LLC Charging Order: California law provides some protection but weaker than states like Nevada or Delaware
- Life Insurance: Proceeds payable to spouse or children are protected from creditors
- Professional Liability: No asset protection for intentional torts or professional malpractice - insurance is critical
Fraudulent Transfer Laws: What You Cannot Do
California's Uniform Voidable Transactions Act (UVTA) prohibits fraudulent transfers - asset transfers made to hinder, delay, or defraud creditors:
ILLEGAL Actions (Will Be Reversed by Courts):
- Transferring assets after a lawsuit is filed or claim emerges
- Transferring assets while insolvent (debts exceed assets)
- Gifting assets for inadequate consideration to avoid known creditor
- Creating trusts or entities after receiving legal demand or threat
- Hiding assets or lying about asset ownership in legal proceedings
Penalty: Transfers can be reversed ("clawed back"), and you may face criminal fraud charges
LEGAL Actions (Properly Implemented Before Claims):
- Creating asset protection trusts or LLCs before any claims or litigation
- Transferring assets to spouse as part of estate planning (if solvent)
- Maximizing exempt assets (retirement accounts, homestead equity)
- Purchasing adequate liability insurance
- Fair-value business transactions and legitimate reorganizations
The "Look-Back" Period: California courts scrutinize transfers made within 4 years before a claim. Transfers must be legitimate, for fair value, and not made with intent to defraud. The earlier you plan, the stronger your protection.
Asset Protection vs. Tax Planning
Asset protection and tax planning are distinct strategies with different goals:
What Does Asset Protection Cost?
Revocable living trust, homestead protection, liability insurance review, LLC formation for 1-2 properties. Suitable for moderate-risk individuals.
Domestic or offshore asset protection trusts, multiple LLCs, family limited partnerships. For high-net-worth individuals, professionals with liability exposure.
Compare to: Average lawsuit settlement: $50,000-$500,000. Median jury verdict: $1 million+. Legal defense costs: $100,000-$500,000. Asset protection is insurance against catastrophic financial loss - the question isn't whether you can afford it, but whether you can afford not to have it.
Who Needs Asset Protection?
Asset protection isn't just for the ultra-wealthy. Anyone with significant assets or elevated risk exposure should implement protection strategies:
High-Net-Worth Individuals
If you have over $1 million in net worth, you're a target for lawsuits. Plaintiffs' attorneys research defendants' assets before filing suits. Visible wealth (nice home, luxury cars, successful business) attracts litigation. Multiple properties, investment portfolios, and business interests all need layered protection strategies.
Licensed Professionals
Doctors, dentists, lawyers, accountants, engineers, architects, and contractors face constant malpractice exposure. Professional liability insurance may not cover all claims, and a single judgment can wipe out decades of wealth accumulation. Asset protection provides backup protection beyond insurance limits.
Business Owners & Entrepreneurs
Running a business exposes you to customer lawsuits, employee claims, vendor disputes, regulatory actions, and partnership conflicts. Without proper structuring, business debts and liabilities threaten your personal assets including your home, savings, and retirement accounts.
Real Estate Investors & Landlords
Property ownership creates liability exposure from tenant injuries, slip-and-falls, environmental issues, and discrimination claims. Each property should be held in a separate LLC to prevent one lawsuit from reaching your other properties. Equity in rental properties is particularly vulnerable without protection.
Anyone Going Through Major Life Changes
Marriage, divorce, business expansion, retirement, or inheritance all create new risks and opportunities. Proactive planning during transitions protects assets before conflicts arise. Prenuptial agreements, business buy-sell agreements, and trust planning prevent future disputes.
Corporate Executives & Board Members
Directors and officers face shareholder lawsuits and regulatory actions. While D&O insurance provides coverage, personal assets may be exposed if coverage is exhausted or claims are excluded. High compensation and stock options make you an attractive defendant.
When Should You Implement Asset Protection?
Timing is everything in asset protection. The ideal time is NOW, before any claims exist:
Best Times to Establish Protection:
- When starting a new business - Structure properly from day one to separate business and personal assets
- After a significant income increase - New wealth attracts attention; protect it immediately
- Before purchasing investment property - Set up LLC before acquisition, not after
- Upon receiving inheritance or windfall - Large lump sums make you a litigation target
- When getting married - Prenuptial agreements and separate property trusts prevent divorce exposure
- Before professional license approval - Structure protection before you begin practice and exposure
- When children leave home - Estate planning and protection for retirement assets
- Every 3-5 years for review - Regular updates ensure continued effectiveness
Too Late to Implement:
Once you've been served with a lawsuit, received a demand letter, been in an accident, or become aware of a creditor claim, it's too late. Any transfers after these "badges of fraud" will be reversed by courts. The best defense is having protection already in place.
Protecting Real Estate Assets
Real estate represents most people's largest asset and requires specialized protection strategies:
Primary Residence Protection
California's homestead exemption automatically protects $300,000-$600,000 of home equity. Beyond the exemption, consider: (1) Titling home in tenancy in common with spouse so only half is exposed to each spouse's debts, (2) Equity stripping through legitimate liens or home equity lines of credit, (3) Placing excess equity in protected retirement accounts, (4) Transferring to qualified personal residence trust (QPRT) for estate planning with side benefit of removing from creditor reach.
Rental Property Protection
Each rental property should be held in a separate single-member LLC. This creates a liability firewall - if a tenant sues over one property, they can only reach that property's LLC, not your other rentals or personal assets. The LLC operating agreement and proper maintenance (separate bank accounts, annual filings, no commingling) are critical. Consider umbrella insurance as first layer, LLC as second layer, and placing LLC interests in trust for third layer.
Commercial Real Estate
Commercial properties carry higher liability due to greater foot traffic and business operations. Use Delaware or Nevada LLCs for stronger charging order protection. Consider series LLCs (available in some states) that create internal liability divisions. Mortgage financing may be more complex with LLC ownership - work with commercial lenders familiar with entity-owned properties.
Business Owner Asset Protection Strategies
Business owners need multi-layered protection separating business assets from personal wealth:
1. Proper Entity Structure
S-Corporation or LLC for operations (liability shield). Holding company LLC owns operating company (two-tier structure). Separate LLC for valuable business real estate. Spouse owns complementary business in separate entity. This creates multiple barriers between creditors and your personal assets.
2. Lease vs. Own Strategy
Don't own valuable assets in your operating business. Instead, separate LLC owns equipment and leases it to operating company. Another LLC owns real estate and leases it to business. If operating company gets sued, these valuable assets are unreachable and continue generating rental income.
3. Buy-Sell Agreements
Partnership agreements should restrict transfer of ownership interests. This prevents creditors from forcing sale or seizing ownership. "First refusal" and "consent" clauses make your business interest unmarketable to creditors, reducing its value for judgment purposes.
4. Don't Personally Guarantee Debt
Business loans should be non-recourse or guaranteed only by business assets, not personal assets. SBA loans often require personal guarantees - negotiate limitations or use alternative financing. Every personal guarantee is a direct hole in your asset protection plan.
Common Asset Protection Mistakes
Waiting Until You're Sued
Once litigation starts, transferring assets is fraudulent. Protection must be in place before claims arise. By the time you need it, it's too late.
Relying on Insurance Alone
Insurance has limits and exclusions. A single judgment above policy limits exposes all unprotected assets. Use insurance as first line, legal structures as second.
DIY Asset Protection
Online forms and cookie-cutter trusts often fail. California courts scrutinize asset protection structures. Improper planning can be worse than no planning - it creates false security.
Not Updating Your Plan
Laws change, assets grow, risks evolve. Asset protection requires regular review (every 3-5 years) and updates as circumstances change.
Protect What You've Built
Don't wait for a lawsuit to realize you needed protection years ago. Let us design a comprehensive asset protection strategy tailored to your unique situation and California's laws.
Call (818) 291-6217Don't Wait Until It's Too Late
Asset protection must be implemented before you need it
Call (818) 291-6217 for Free ConsultationOr book online:
Schedule AppointmentTime is Critical
Asset protection planning must be done BEFORE you need it. Once a lawsuit is filed or a creditor makes a claim, it may be too late to protect your assets.
Don't wait until you're facing a legal threat. Proactive planning today ensures your wealth is protected tomorrow.
Frequently Asked Questions About Asset Protection
Get answers to common questions about protecting your wealth from lawsuits, creditors, and liability.
Related Estate Planning Services
Explore our comprehensive estate planning services to protect your family and legacy.
Related Services
Comprehensive estate planning solutions for California families
Business Succession Planning
Protect your business assets and plan for seamless ownership transition.
Learn MoreLife Insurance Trust
Remove life insurance from your taxable estate with an irrevocable trust.
Learn More