Asset Protection FAQs for California Families

Understand what’s typically off-limits

Many retirement accounts have strong protections, and the homestead exemption may protect a portion of home equity. Protections vary, so strategy is about layering tools—insurance, entities, and trusts—rather than relying on a single silver bullet.

Why timing and intent matter

If a claim is pending or foreseeable, transfers can be unwound as fraudulent. Legitimate planning happens early, has clear business or estate reasons, and respects formalities. We help clients document purposes so structures hold up.

What revocable trusts can—and can’t—do

A revocable living trust is great for probate avoidance and privacy, but it does not shield your own assets from your own creditors because you retain control. For protection, families look to irrevocable trusts or entities, depending on goals and risk profile.

Where LLCs help—and where they don’t

An LLC can isolate liabilities tied to the company’s activities (like a rental) from your personal accounts, if maintained properly. It won’t protect personal assets from personal liabilities; that’s where insurance and trusts may be added. Families often start with family LLCs for rentals and operating ventures, then integrate those interests with their estate plan.

Lawful, transparent planning

No. Proper planning is legal and disclosed—entities are registered, and trusts are documented. The goal is to position assets within lawful structures, not to conceal them.