The Sliding Scale of Asset Protection
Asset-protection advisors measure the legal protection afforded a client’s assets by using a sliding scale. This scale represents a continuum of protection. Some assets are completely unprotected and others are highly protected.
—Susan Brousseau CLU, ChFC, CFP®
Some of the most common questions that arise around asset protection planning are in regard to which assets are protected, to what degree, and which are not. Asset-protection advisors measure the legal protection afforded a client’s assets by using the sliding scale of asset protection in which some assets are completely unprotected and others are highly protected. There is a range of financial products and services that can protect assets in varying degrees. (See Table.)
|Asset||Individual Name||Revocable Trust||Irrevocable Trust||LLC's||FLP's||GRIT's GRAT's GRUT's||Qualified Personal Residence Trust|
|Second Home Occasionally Rented||-3||-3||+4||+4||+4||+4||+4|
|Planes Boats ETC.||-5||-5||-5||-5||-5||-5||-5|